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Question

Double trouble
Recent activity on May 25, 2020
2.3 k Views

Hi i don't understand why we have to multiply 10 not 20 for 'number of miles per trip' in below equation.

In exhibit 1, average miles per route is 20 right?

• Cost per trip = (Depreciation per mile + fuel per mile) * number of miles per trip + insurance cost per trip + labour cost
• Cost per trip = (420k / 300k + 0.5) * 10 + 10,500 / 350 / 10 + 20 * 1 = £61

(edited)

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Hi there,

I'm a bit confused by your question. It looks like you do multiply by 10 (see image below).

Oops my bad. I have change the numbers in my question.

(edited)

Hi there! I'd also like to know why we multiply by 10 and not by 20? The average miles per trip is 20 right?

Hey there!

Since this is an expert cse, I would recommend you to ping directly the author. He is on PrepL!

Hope it helps!

Cheers,

Clara

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