Which of the following components make up the fuel surcharge?
Which of the following components make up the fuel surcharge?
The components that make up the fuel surcharge are the fuel peg/base, index, and ratio. The fuel peg/base is the predetermined price at which the surcharge begins to apply. The index tracks changes in fuel prices over time, enabling the surcharge to adjust accordingly. The ratio defines the proportion of the fuel price increase that is passed on to the customer.
The correct answer is A. Fuel peg/base, index, and ratio. Here's a more detailed breakdown of why the other answers is incorrect and how these components work together: Fuel Peg/Base: The predetermined fuel price at which a surcharge starts is activated. No surcharge applies if the fuel price remains below this base. Index: Tracks fuel price changes over time (often the EIA weekly retail prices). The surcharge adapts according to this index. Ratio: Defines the percentage of the fuel price increase (above the base) that is passed on to the customer.