Exercise 11-14 (Algo) Identification of Relevant Costs [LO11-1]

Kristen Lu purchased a used automobile for $20,650 at the beginning of last year and incurred the following operating costs:

Depreciation ($20,650 5 years)	$ 4,130
Insurance	$ 2,200
Garage rent	$ 1,100
Automobile tax and license	$ 570
Variable operating cost	$ 0.15	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 $4,130. The car is kept in a garage for a monthly fee.

Required:

1. Kristen drove the car 16,000 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	$0.00