Brief Exercise 10-7 (Part Level Submission)

Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven140,000miles. Taxi no. 10 cost $30,000and is expected to have a salvage value of $300. Taxi no. 10 is driven28,000miles in year 1 and18,000miles in year 2.

(a1)

Calculate depreciation cost per mile using unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

Depreciation cost$__________per mile