User Account

All Pages

How to compute the average cost per kilometre of owning

Assignment Help Accounting Basics
Reference no: EM132583422

Hart Company sells and delivers office furniture across Western Canada.

The costs associated with the acquisition and annual operation of a delivery truck are given below:

Insurance$1,750

Licences$250

Taxes (vehicle)$150

Garage rent for parking (per truck)$1,350

Depreciation ($30,000 ÷ 5 years)$6,000

Gasoline, oil, tires, and repairs$0.16/km

Required:

Question 1: Assume that Hart Company owns one truck that has been driven 50,000 kilometres during the first year. Compute the average cost per kilometre of owning and operating the truck. (Round your answer to 2 decimal places.)

Question 2: Assume that the company decides to use the truck during the second year. Near year-end, an order is received from a customer over 1,000 kilometres away. What costs from the previous list are relevant in a decision between using the truck to make the delivery and having the delivery done commercially? (Round your answer to 2 decimal places.)

Reference no: EM132583422

Questions Cloud

What the film Mind Over Money : What the film ‘Mind Over Money' and examine how incorporating human psychology into finance will enable people make better financial decisions
How conversion to a new system will affect the policies : Explain how conversion to a new system will affect the Policies and Procedures, Data Storage, Employees and Physical Facilities
Macroeconomics and microeconomics play general role : XYZ Company is aware that both macroeconomics and microeconomics play a general role in its organization's success
What are the economic costs of waiting lines : What are the economic costs of waiting lines? How might these costs be measured? What decision criteria can be used to justify expanding services to reduce
How to compute the average cost per kilometre of owning : One truck that has been driven 50,000 kilometres during the first year. Compute the average cost per kilometre of owning and operating the truck.
Prepare budget plan for the implementation : Health care is a public policy that differs depending on where you live; Prepare a budget plan for the implementation of your chosen healthcare program.
What is impact of capitalist and socialist economic systems : Business Question - What is the impact of capitalist and socialist economic systems on the way small businesses are operate
Analyzing the companys e-commerce operations : Read and analyze the Risk Factors section in the company's report to investors (Item 1.A). This section is a professionally written risk analysis
Find and calculate the market risk premium : Find and calculate the market risk premium and the expected rate of return on the market. (Enter your answers as a whole percent.)

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd