Your small remodeling business has two work vehicles. One is a small passenger c

Question

Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles. An upgraded car will get 40 mpg; an upgraded truck will get 12.5 mpg. The cost of gasoline is $4.00 per gallon.

Calculate the annual fuel savings, in gallons, for the truck and car assuming both vehicles are driven 15,000 miles per year

Calculate the annual fuel savings, in gallons, for the truck and car assuming both vehicles are driven 15,000 miles per year

Explanation / Answer

Gallons used by Car before upgrading = 15000 / 25 = 600 gallons

Gallons used by Car afetr upgrading = 15000 / 40 = 375 gallons

Gallons saved = 600 - 375 = 225 gallons

Savings on upgrading car = $4 * 225 = $900

Gallons used by Truck before upgrading = 15000 / 10 = 1500 gallons

Gallons used by Truck afetr upgrading = 15000 / 12.5 = 1200 gallons

Gallons saved = 1500 - 1200 = 300 gallons

Savings on upgrading truck = $4 * 300 = $1200

Annual fuel savings in gallons = 225 + 300 = 525 gallons

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