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Calculations for fixed and variable cost savings

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You are the Logistic Manager of a food company which uses its own private transportation. The following summarize the fixed and marginal (variable) costs of one truck in your fleet which travels 160,000 miles per year. You have estimated that if a truck travels 80,000 miles more its fixed cost increases by 25%. Would assigning your trucks to additional travel be cost effective? (show all your calculations for fixed and variable cost savings)

Reference no: EM132736532

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