Hart Company sells and delivers office furniture across Western Canada. The costs assoclated with the...
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Hart Company sells and delivers office furniture across Western Canada. The costs assoclated with the acquisition and annual operation of a delivery truck are given below: Required: 1. Assume that Hart Company owns one truck that has been driven 26,000 kilometres during the first year. Compute the average cost per kllometre of owning and operating the truck. (Round your answer to 2 decimal places.) 2. This part of the question is not part of your Connect assignment. 3. Assume that the company decldes to use the truck during the second year. Near year-end, an order is recelved from a customer over 1,000 kilometres away. What costs from the previous IIst are relevant in a decision between using the truck to make the dellvery and having the delivery done commerclally? (Round your answer to 2 decimal places.) 4. Occasionally, the company could use two trucks at the same time. For this reason, some thought is belng given to purchasing a second truck. The total kllometres driven would be the same as if only one truck were owned. What costs from the previous list are relevant to a decision about whether to purchase the second truck
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Hart Company sells and delivers office furniture across Western Canada. The costs assoclated with the acquisition and annual operation of a delivery truck are given below: Required: 1. Assume that Hart Company owns one truck that has been driven 26,000 kilometres during the first year. Compute the average cost per kllometre of owning and operating the truck. (Round your answer to 2 decimal places.) 2. This part of the question is not part of your Connect assignment. 3. Assume that the company decldes to use the truck during the second year. Near year-end, an order is recelved from a customer over 1,000 kilometres away. What costs from the previous IIst are relevant in a decision between using the truck to make the dellvery and having the delivery done commerclally? (Round your answer to 2 decimal places.) 4. Occasionally, the company could use two trucks at the same time. For this reason, some thought is belng given to purchasing a second truck. The total kllometres driven would be the same as if only one truck were owned. What costs from the previous list are relevant to a decision about whether to purchase the second truck 