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Z is a transportation service company, the trucks deliver loads to the destinations and come back to the headquarters. the trucks drive in total 200,000 kilometers(laden and unladen) per anum. Fuel and other variable running costs per kilometer traveled (laden or unladen) are budgeted to be $0.70. Other fixed running costs amount $160,000 per year. Total estimated tone kilometers (composite cost unit) for the company are 500,000
what is the standard running cost per tone kilometer?
a.$0.60
b.$1.67
c.$0.28
d.$0.40
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