Question

The Rapid Delivery Service is considering the expansion of its business into afternoon retail delivery service. This would require an additional $28,000 in labor costs per month. Company-owned vehicles now used to make morning deliveries to local manufacturers could be used in the afternoons to make retail deliveries. However, it is estimated that an additional $10,300 would be required per month for gas, oil, and maintenance. It is further estimated that the retail delivery use of the trucks would be allocated 40% of the existing $13,300 fixed vehicle costs. What is the differential delivery cost per month for expanding into the retail delivery market

Answer 1

Answer: $38,300

Step-by-step explanation:

$28,000 + $10,300 = $38,300