Suppose the current average cost per km for operating a car is $0.70, but the cost of gas and maintenance is $0.40. Beth is required to drive to a client's office that is 50 kms away (100 kilometers round-trip). The client is an artist, and Beth will be expected to take the client to lunch as part of their meeting. Beth can use her own car (a brand-new luxury sedan)and be reimbursed $0.50 per km, use a company-owned vehicle (a 3-year-old economy sedan), or rent a 4-year-old sports car from Gamma Car Rental for $25 per day plus $0.25 per km. Identify relevant information from the preceding paragraph for Beth's transportation decision. For each piece of relevant information, discuss why you believe it is relevant.
a)Identify the least costly alternative from the company's perspective.
b)Identify two qualitative factors that might influence Beth's decision.

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The Answer of Suppose the current average cost per km for operating a car is $0.70, but the cost of gas and maintenance is $0.40. Beth is required to drive to a client's office that is 50 kms away (100 kilometers round-trip). The client is an artist, and Beth will be expected to take the client to lunch as part of their meeting. Beth can use her own car (a brand-new luxury sedan)and be reimbursed $0.50 per km, use a company-owned vehicle (a 3-year-old economy sedan), or rent a 4-year-old sports car from Gamma Car Rental for $25 per day plus $0.25 per km. Identify relevant information from the preceding paragraph for Beth's transportation decision. For each piece of relevant information, discuss why you believe it is relevant.
a)Identify the least costly alternative from the company's perspective.
b)Identify two qualitative factors that might influence Beth's decision.

Suppose the Current Average Cost Per Km for Operating a Car