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Two manufacturing firms, located in cities 90 miles apart, both send their trucks four times a week to the other city full of cargo and return empty. Each driver costs $275 per day with benefits (the round trip takes all day) and each firm has truck operating costs of $1.30 a mile. How much could each firm save weekly if each sent its truck twice a week and hauled the other firm's cargo on the return trip

Sagot :

Answer: $1,018

Explanation:

Cities are 90 miles apart so a roundtrip is 180 miles which means that the operating cost per trip is:

= 1.30 * 180

= $234

Total cost per trip = Divers cost + operating cost

= 275 + 234

= $509

Four trips are made per week so total cost is:

= 509 * 4

= $‭2,036‬

If each sent its truck twice a week and hauled the other firm's cargo on the return trip then savings would be:

= Cost of 4 trips - cost of 2 trips

= 2,036 - (509 * 2)

= $1,018