Willie Lohmann travels from city to city in the conduct of his business. every o

Question

Willie Lohmann travels from city to city in the conduct of his business. every other year he buys a used car for about $15000. the dealer allows about $8000 as a trade -in allowance, with the result that the salesman spends $7000 every other year for a car. Willie keeps accurate records, which show that all other expenses on his car amount to 32.3 cent per mile for each mile he drives. Willies's employer has two plans by which salesman are reimbursed for their car expenes :Which computation gives Willie the larger reimbursement?

(A or B )

A- Willie will receive all his operating expenses, and in addition will receive $3500 each year for the decline in value of aotomobile.

B- Willie will receive 52 cent per mile but no operating expenses and no depreciation allowance.

Explanation / Answer

A- Willie will receive all his operating expenses, and in addition will receive $3500 each year for the decline in value of aotomobile.

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