You have been hired to manage the transportation department. Your discussion to buy 10 trucks to expand shipping capacity from several suppliers who quote the trucks as “Fixed Cost”. In addition, the
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You have been hired to manage the transportation department. Your discussion to buy 10 trucks to expand shipping capacity from several suppliers who quote the trucks as “Fixed Cost”. In addition, the “Variable Costs” is the fuel and maintenance costs based on miles (verses Volume). What range of mileage would the various suppliers provide lowest costs. TC = FC + VC * Miles (use algebra or graph)? Show work for partial credit. (20 pts)Truck SupplierFixed costsVariable costs/mile A$2,000,000$.45B$3,000,000$.325C$3,300,000$.50.
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