Question

Toppr reimburses its employees gas cost for work related travel, based on mileage. Based on the following data, what will be the rate in dollars per gallon that Toppr used to reimburse employees?

1. Toppr has $126$ employees who travel for office related work.

2. Average yearly travel distance is 12250 miles for an employee

3. Average gas mileage reported by all employees was $22.5$ miles per gallon.

4. Toppr paid out 96040.00$ in total in gas reimbursement.

• A. 0.44$
• B. 0.71$
• C. 1.40$
• D. 1.60$

Answer 1

The correct option is C 1.40$No.ofgallonsofgas$=\dfrac {\mbox {Avg. yearly travel distance}}{\mbox {Avg. gas mileage}} = \dfrac {12250}{22.5}= 544.4$ per year person

Amount reimbursed per employee $=\frac{\text{Total amount reimbursed}}{\text{No. of employees}}=\frac{96040}{126}=762.2$ per year per person

Rate per gallon $=\frac{762.2}{544.4}=$ 1.4$