Hi i don't understand why we have to multiply 10 not 20 for 'number of miles per trip' in below equation.
In exhibit 1, average miles per route is 20 right?
- Cost per trip = (Depreciation per mile + fuel per mile) * number of miles per trip + insurance cost per trip + labour cost
- Cost per trip = (420k / 300k + 0.5) * 10 + 10,500 / 350 / 10 + 20 * 1 = £61