Question

A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $350 per day. Assume that the additional vehicle would be capable of delivering 1,750 packages per day and that each package that is delivered brings in $0.35 in revenue. Also assume that adding the delivery vehicle would not affect any other costs.

Answer 1

MRP: 612.5

MRC: 350

Explanation:

MRP: 1750 x 0.35/1= 612.5

MRC: cost to rent each vehicle per day