Arlington Town uses an Internal Service Fund to account for its motor pool activities. Based on the following information, calculate the price per trip that the Motor Pool Internal Service Fund needs to charge users during calendar year 2018 to break even.

$165 is the price per trip.

Explanation:

Computation of price per trip that the internal service funds need to charge from the users of the motor pool for break even during the fiscal year 2018

Particulars                                                                    Amount (In dollars)

Autombiles ( 90000 divide by 5)                                 18000

Salaries                                                                           80000

Fringe benefits                                                               24000

Insurance ( 6000 divide by 3)                                      2000

Fuel and maintainenance                                                 8000

Total                                                                               132000

Estiamyed number of trips = 800

Therefore, the price per trip = 132000 divide by 800 = $165

answer; lags, push the econ below the natural level of output;

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