Lifter Company uses forklifts to move materials from the store area to the production floor. The company has four forklifts, which are fully used 16 hours per day (making five moves per hour). The company works 300 days per year, running two 8-hour shifts per day. The forklift operators work 2,000 hours per year and are paid an annual salary of $45,000.
According to a recent study, each forklift uses 0.25 litres of fuel per move. The cost of fuel is $2.00 per litre.
-Refer to the Figure.What is the fuel budget for the year for moving materials?
A)$12,000
B)$28,000
C)$36,000
D)$48,000

Question

Quizplus · Accepted Answer

The total number of moves per year is 4 forklifts * 16 hours/day * 5 moves/hour * 300 days/year = 96,000 moves. Each move uses 0.25 litres of fuel, so the total fuel used is 96,000 moves * 0.25 litres/move = 24,000 litres. At $2.00 per litre, the fuel budget is 24,000 litres * $2.00/litre = $48,000.

Lifter Company Uses Forklifts to Move Materials from the Store