Question

hire a firm to make deliveries for $200 per month plus mileage of 50 cents per mile based on average of 1200 miles per month. or lease a truck for $350 per month and pay the related expenses. You estimate that the related expenses for gas,insurance and other are $480 per month. which would be the best deal. how much would you save in a year

Answer 1

Hire a firm:
Fixed: $200
Mileage cost: 0.5 x 1200 = $600
Total cost = $200 + $600 = $800

Lease a truck:
Fixed: $350
Expense: $480
Total = $350 + $480 = $830

It is cheaper to hire a firm.

Saving per month = 830 - 800 = $30
Saving per year = $30 x 12 = $360

Saving per year is estimated to be $360.