Your small remodeling business has two work vehicles one is


Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes.

The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles.

An upgraded car will get 40 mpg; an upgraded truck will get 12.5 mpg. The cost of gasoline is $3.65 per gallon. Calculate the annual fuel savings, in gallons, for the truck and car assuming both vehicles are driven 11,500 miles per year. (Round your answers to 2 decimal places, e.g., 32.16.)

Fuel savings Truck

52.95 gallons per year Car  gallons per year

Assuming an upgrade is a good idea in the first place, which one should you upgrade? Both vehicles are driven 11,500 miles per year.

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Financial Management: Your small remodeling business has two work vehicles one is
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