Question

# Your small remodeling business has two work vehicles. One is a small passenger car used for...

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 \$3.75 per gallon.

Calculate the annual fuel savings in gallons for the truck and car assuming both vehicles are driven 12,500 miles per year.

Solution:

For Car:

Before upgrade the mileage is 25mpg. So, to cover 12,500 miles it will require 12,500/25 = 500 gallon.

Before upgrade the mileage is 40mpg. So, to cover 12,500 miles it will require 12,500/40 = 312.5 gallon.

Net annual fuel savings in gallon for car would be = 500 - 312.5 = 187.5 gallon

For Truck:

Before upgrade the mileage is 10mpg. So, to cover 12,500 miles it will require 12,500/10 = 1250 gallon.

Before upgrade the mileage is 12.5mpg. So, to cover 12,500 miles it will require 12,500/12.5 = 1000 gallon.

Net annual fuel savings in gallon for Truck would be = 1250 - 1000 = 250 gallon

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