• The truck costs $170000 to buy.
• It can haul 16000 kg of bananas.
• The capital charge factor is 0.25.
• The taxes, fees, and insurance each year total to $12000. The truck is driven 220000 km/year.
• Variable operation and maintenance (VOM) costs add up to $0.02 per kilometer.
• Fuel costs $1.05 per liter. . The truck can travel 100 km on 46 L of fuel. Part 1:
What are the fixed costs in dollars per kilometer? .
Part 2:
What are the variable costs in dollars per kilometer?
