Greg Gardner is asales engineer for a water purification company and travels extensively. He leases a car for $400/month and has calculated his expenses (gas, oil, tolls, etc), to be 18 cents per mile. Greg’s employer has two plans by which salesmen arereimbursed for car expenses:
1. (A) Greg will receive all his operating expenses (lease paymentsand expenses)
2. (B) Greg receives 40 cents per mile.
If Greg drives 18,000 miles peryear which reimbursement plan should he choose? Address each of thesteps outlined in the decision making process.
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