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Homework answers / question archive / Hart Company sells and delivers office furniture across Western Canada

Hart Company sells and delivers office furniture across Western Canada

Accounting

Hart Company sells and delivers office furniture across Western Canada.

 

The costs associated with the acquisition and annual operation of a delivery truck are given below:

 

   Insurance$4,446   Licences$210   Taxes (vehicle)$124   Garage rent for parking (per truck)$1,240   Depreciation ($26,000 ÷ 5 years)$5,200   Gasoline, oil, tires, and repairs$0.21/km

 

Required:

3. Assume that the company decides to use the truck during the second year. Near year-end, an order is received from a customer over 1,000 kilometres away. What costs from the previous list are relevant in a decision between using the truck to make the delivery and having the delivery done commercially? (Round your answer to 2 decimal places.)

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