The Yourtown Motor Pool Fund estimates that the cost of operating and maintaining its fleet of 20 vehicles during 20X8 will be $150,000. On the basis of past experience, each vehicle can be expected to be used 150 days during the year and can be expected to be driven 3,000 miles during the year. The other costs of operating the fund are estimated at $15,000 for the year. The price that the Motor Pool Fund should charge other Yourtown government departments for use of a motor pool vehicle is
a. $50 per day.
b. $50 per day plus $0.25 per mile.
c. $2.50 per mile.
d. $2.75 per mile
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