Legal Question in Business Law in Oman
A utility company has a fleet of vans. The annual operating cost C (in dollars) of each van is estimated to be C=0.35m+2500 where m is the number of miles driven. The company wants the annual operating cost of each van to be less than $13000. To do this m must be less what value?
Asked on 9/23/13, 9:05 am
1 Answer from Attorneys
Fca Prashant Chavan
Expert Edge LLP
24.09.2013
Dear Sir / Madam,
To optimize the utilization of each van, as well as to maintain the annual operating cost of each van to be less than $ 13,000, the value of m should be less than 30,000 (Thirty Thousand).
Method :
First subtract the fixed operating cost from the Annual operating cost. Divide the result by the cost of operating per mile (0.35) gives us the maximum value of m.
Regards,
Answered on 9/23/13, 8:25 pm
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