Your office needs to deliver products to various sites in your town. You can hire a firm to make those deliveries for $200 per month plus mileage of 50 cents per mile based on an average of 1200 miles per month. Or you can lease a truck for $350 per month and pay the related expenses. You estimate that the related expenses for gas, insurance and other are $480 per month. Which would be the best deal, contracting or leasing? How much would you save in a year?
Contracting, $30
Leasing, $30
Contracting, $360
Leasing, $360
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