Question

One of your company's salesmen estimates he will drive 20,000 miles this year and each of the next two years. As the service manager for the company's fleet of six-cylinder compact automobiles, you are asked to determine the total costs for each of the three years. Year 1 Total Cost: $ Year 2 Total Cost: $ Year 3 Total Cost: $

Answer 1

Therefore, the total costs for year 1 will be $2,240, for year 2 they will be $2,040, and for year 3 they will be $2,120.

Costs

Given that one of your company's salesmen estimates he will drive 20,000 miles this year and each of the next two years, and as the service manager for the company's fleet of six-cylinder compact automobiles, you are asked to determine the total costs for each of the three years, to determine said cost, the following calculation must be made:

• Year 1:
• 20000 x 0.112 = X
• 2,240 = X

• Year 2:
• 20000 x 0.102 = X
• 2,040 = X

• Year 3:
• 20000 x 0.106 = X
• 2,120 = X

Therefore, the total costs for year 1 will be $2,240, for year 2 they will be $2,040, and for year 3 they will be $2,120.

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