Computing the total fixed cost


Assignment:

A carrier has an average labor cost of $.23 per mile and fuel is currently costing them $.225 per mile. There total fixed cost that include items such as equipment, maintenance, and fuel average out to $.38 per mile.

Calculate the OR using the formula from page 183 on the lanes below.

  • 782 miles $875.00 in revenue.
  • 132 miles $550.00 in revenue.
  • 1876 miles $1,790.00 in revenue.
  • 1904 miles $2,075.00 in revenue.
  • 249 miles $625.00 in revenue.

A truck can average 500 miles per day. How many days would it take to deliver each order?

If a driver averages 45 miles per hour and a truck needs 1 hour each to load and unload the freight, recalculate the OR for each order. 

Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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Accounting Basics: Computing the total fixed cost
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