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Old 07-19-2008, 05:17 PM   #5 (permalink)
nobb4u
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Re: FSC What happened?

If you ran 100,000 miles and made $100,000 and your fuel cost was .169 of your revenue in 2001, then in 2002 you ran 120,000 miles and made $100,000 even if the fuel was the same price your fuel cost would be up because you ran 20% more miles.

Example:

100,000 miles @ 8MPG =12,500 gallons of fuel @ 1.00 per gallon = $12,500 = .125%
120,000 miles @ 8MPG =15,000 gallons of fuel @ 1.00 per gallon = $15,000 = .15%

So you see your formula is flawed by only dividing your revenue by your fuel cost. There is more than one factor involved.
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