Kristen Lu purchased a used automobile for $15,850 at the beginning of last year and incurred the following operating costs: Depreciation ($15,850 5 years) Insurance Garage rent Automobile tax and license. Variable operating cost $ 3,170 $ 1,600 $ 800 $ 430 $0.12 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $3,170. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 20,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) Average fixed cost per mile Variable operating cost per mile Average cost per mile

Kristen Lu purchased a used automobile for $15,850 at the beginning of last year and incurred the following operating costs: Depreciation ($15,850 5 years) Insurance Garage rent Automobile tax and license. Variable operating cost $ 3,170 $ 1,600 $ 800 $ 430 $0.12 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $3,170. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 20,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) Average fixed cost per mile Variable operating cost per mile Average cost per mile

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 27CE

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