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Exercise 13-14 (Algo) Identication of Relevant Costs [L013-1] Kristen Lu purchased a used automobile for $19,300 at the beginning of last year and incurred the
Exercise 13-14 (Algo) Identication of Relevant Costs [L013-1] Kristen Lu purchased a used automobile for $19,300 at the beginning of last year and incurred the following operating costs: Depreciation ($19,300 + 5 years) S 3,860 Insurance 5 2,100 Garage rent 3 1,100 Automobile tax and license 5 540 Variable operating cost. S 0.07 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 ve years, so the annual straightline depreciation is $3,860. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 19,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places} Average xed cost per mile 5 1600.00 Variable operating cost per mile $ 0.4?r Average cost per mile $ 16004
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