Question

In one week a certain taxicab company's cabs used a total of 600 gallons of gasoline, and each gallon of gasoline cost $1.20. If the cabs traveled a total of 9,000 miles that week, what was the company's average gasoline cost per mile traveled by the cabs?

A. $0.08
B. $0.12
C. $0.15
D. $0.18
E. $0.20

Answer 1

The company's average gasoline cost per mile is calculated by dividing the total cost of gasoline, $720, by the number of miles traveled, 9,000, resulting in $0.08 per mile. The correct answer is A. $0.08.

Step-by-step explanation:

To find the taxicab company's average gasoline cost per mile traveled, we will divide the total gasoline cost by the total miles traveled. We're given that the company used 600 gallons and that each gallon costs $1.20. The total cost for gasoline would therefore be 600 gallons multiplied by $1.20 per gallon.

Total gasoline cost = 600 gallons × $1.20/gallon = $720

The cabs traveled 9,000 miles, so to find the cost per mile, we divide the total cost by the total miles:

Average cost per mile = Total cost / Total miles = $720 / 9,000 miles = $0.08 per mile

Therefore, the correct answer is A. $0.08.