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James Patrick is considering purchasing a new car. The price of the car is $63000, and James hopes to keep it 5 years and then
James Patrick is considering purchasing a new car. The price of the car is $63000, and James hopes to keep it 5 years and then sell it for $16600. Based on past experience, James drives about 13,000 km per year and lives in a downtown apartment where they must pay a $69 per month parking fee. James has budgeted the following automobile expense items for the next 5 years: Expense Cost Fixed/Variable Gasoline(8.5L Per 100KM)($2.1 Per Liter) Variable Licence/Registration $694 Fixed nsurance $4566 Fixed Maintenance $1950 Variable Tires ($968 per set that last 42000KM) $ Variable Parking (60 Months) $4140 Fixed Interest $3930 Fixed Depreciation (STRAIGHT LINE) $ Fixed CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION: TOTAL KMS 65000KM TOTAL FIXED COSTS (TFC) AVG. FIXED COSTS / KM $ TOTAL VARIABLE COSTS (TVC) AVG. VARIABLE COSTS / KM $ TOTAL COSTS (TC) S AVG. TOTAL COSTS/KM $
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