Question

Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles. An upgraded car will get 40 mpg; an upgraded truck will get 12.5 mpg. The cost of gasoline is $3.90 per gallon.

Calculate the annual fuel savings, in gallons, for the truck and car assuming both vehicles are driven 14,000 miles per year. (Round your answers to 2 decimal places, e.g., 32.16.)

Truck (gallons per year)
Car (gallons per year)

Assuming an upgrade is a good idea in the first place, which one should you upgrade? Both vehicles are driven 14,000 miles per year.

Answer 1

Given,

Number of miles travelled = 14000 miles per year

Cost per gallon = $ 3.90

Solution :-

Calculation of annual fuel savings for the truck No. of gallons consumed per year before upgradation) - No. of miles travelled miles per gallon - 14000 miles per year = 1400 gallons - 10 miles per gallon per year. No. of gallons consumed per year (after upgradation ) - 14000 miles per year – 1120 gallons per 12.5 miles per gallon Annual fuel savings (in = 1400 gallons per – Year gallons) 1120 gallons per year = 280 gallons per year

Calculation of annual fuel Savings for the car : No. of gallons consumed per year (before upgradation) - No. of miles travelled miles per gallon 14000 miles per year 25 miles per gallon 560 Bronce gallons per year No. of gallons consumed per year fafter upgradation) - 14000 miles per year. - 40 miles per gallon - 350 gallons per year Annual fuel savings (in gallons) - 560 gallons per – 350 gallons per Year Year = 210 gallons per year.

upgrade - for Truck & Cost per gallon which one should you Annual fuel savings - Annual fuel savings In gallons 280 gallons per year - $ 1092 per year X $3.90 per gallon Annual fuel savings for Car - 210 per X $3.90 per gallon. gallons year - $ 819 per year Since, annual fuel savings is more than Car, you upgrade truck. of Truck should