Practice question

A transport manager calculates that a 40-tonne articulated vehicle costs EUR 0.45 per kilometre in running (variable) costs and EUR 320 per day in standing (fixed) costs. For a job covering 600 km in one day, what is the minimum cost the rate should at least cover?

  1. EUR 270
  2. EUR 590
  3. EUR 320
  4. EUR 920

Answer: B — EUR 590

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