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Consider the following costs of owning and operating a car. A $ 1 5 , 0 0 0 Ford Taurus financed over 5 years at
Consider the following costs of owning and operating a car. A $ Ford Taurus financed over years at percent interest means a monthly payment of $ Insurance costs $ a month regardless of how much you drive. The car gets miles a gallon and uses unleaded regular that costs $ per gallon. Finally suppose that wear and tear on the car costs cents a gallon. Which costs are fixed and which are variable? Why? Explain. Also, in deciding whether to drive from New York to Pittsburghabout miles round trip to visit a friend, which costs would you consider and why?
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