Kristen Lu purchased a used automobile for $11,000 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 $2,200. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 14,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.)

1111 points Exercise 10-14 ldentification of Relevant Costs [LO10-1] Kristen Lu purchased a used automobile for $11,000 at the beginning of last year and incurred the following operating costs: Depreciation ($11,000 5 years) $2,200 $1,100 Insurance $600 Garage rent Automobile tax and license $300 Variable operating cost $0.13 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 $2,200. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 14,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) Fixed cost per mile Variable operating cost per Average cost per mile