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Exerclse 13-14 (Algo) Identification of Relevant Costs [LO13-1] Kristen Lu purchased a used automobile for $9,200 at the beginning of last year and incurred the
Exerclse 13-14 (Algo) Identification of Relevant Costs [LO13-1] Kristen Lu purchased a used automobile for $9,200 at the beginning of last year and incurred the following operating costs: 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 $1,840. The car is kept in a garage for a monthly fee. Requlred: 1. Kristen drove the car 12,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) 2 Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What costs above are relevant in this decision? (You may select more than one answer. Slngle cllek the box wlth the questlon mark to produce a check mark for a correct answer and double cllek the box wlth the questlon mark to empty the box for o wrong onswer. Any boxes left wlth a questlon mark will be outomatlcelly graded as incorrect.) Varlable operating costs Depreclation
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