Solved: Given the planned number of annual delivery miles 700000, Accounting Basics

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Given the planned number of annual delivery miles 700000

Question - Puget currently charges $10/mile to cover the variable costs of delivery and includes the $500,000 annual fixed cost related to delivery in the cost of concrete. Now they are considering using a new cost per mile rate that covers both their fixed and variable costs.

Required: Given the planned number of annual delivery miles, 700,000, what rate per mile must they charge to break even (no profit markup) on their total delivery costs?

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Accounting Basics: Given the planned number of annual delivery miles 700000

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