Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen

Exercise 6

A delivery company is implementing a system to compare the costs of purchasing and operating different vehicles in its fleet. Truck 415 is driven 125,000 miles per year at a variable cost of $0.13 per mile. Truck 415 has a capacity of 28,000 pounds and delivers 250 full loads per year. What amount is the truck's delivery cost per pound? a. $0.00163 per pound
B) $0.00232 per pound
C) $0.58036 per pound
D) $1.72000 per pound