Pg. 198
1. Given the proposed contracts, what is your company’s average cost of fuel per gallon with
each of the fuel vendors?
Company A
Truck Stop Cost
= (2.514+2.421+2.460+2.738+2.570)/5= 2.5406
Add: Pump fee .02
Add: Transacton Fee .25
Average cost of fuel per gallon= 2.8106
Company B
Retail minus method: (2.705+2.681+2.659+2.576+2.590)/5=2.6422
Minus retail discount: .03
Average Cost of fuel per gallon=2.6122
Company C
Retail minus method: (2.690+2.588+2.543+2.714+2.550)/5=2.597
Minus Retail Discount: .02
Pump fee: .03
Transacton fee: .50
Average Cost of fuel per gallon= 3.127
2. Which truck stop chain should you choose if your goal is to minimize fuel cost? The company I
would choose if I am trying to minimize cost would be company B by using the retail minus
method as the cost is the lowest in this category and the goal of the company will be satsfed
which is to minimize the fuel co