Assignment_Number_Two

Assignment_Number_Two - Assignment Number Two The City of...

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Assignment Number Two: The City of Waterloo operates a motor pool. The motor pool is responsible for purchasing, servicing, and maintaining all passenger cars owned by the city (trucks are purchased by individual departments). The motor pool “rents” the automobiles to each of the other city departments. The rental fee is established so that the motor pool will just cover all of its costs; the motor pool is not expected to operate at a profit. Currently the fee is established by estimating the motor pool’s total annual costs, and dividing this total by the estimated total mileage that will be put on all the cars in the fleet. For example, last year the department anticipated incurring total costs of $1,800,000 and expected its fleet to log 4.8 million kilometres. Thus the rental fee was set at $0.375 per kilometre. The city also compensates employees who drive their cars on an infrequent basis on the basis of kilometres driven. The police commission has noted that the auto rental charges have become a significant part of
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This note was uploaded on 02/28/2012 for the course ECON 101 taught by Professor G during the Summer '11 term at Ryerson.

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Assignment_Number_Two - Assignment Number Two The City of...

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