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Kristen lu purchased a used automobile for $15,000 at the beginning of last year and incurred the following operating costs: Depreciation ($15,000 + 5 years)

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Kristen lu purchased a used automobile for $15,000 at the beginning of last year and incurred the following operating costs: Depreciation ($15,000 + 5 years) Insurance Garage rent Automobile tax and license Variable operating cost $ 3.000 $ 1.500 $ 800 $ 400 $ 0.12 per mile The variable operating cost consists of gasoline, oil, tires, maintenance and repales, 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 $3.000. 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 mille of owning and operating the car. (Round your answers to 2 decimal places.) Average fixed cost per mile Variable operating cost permite Average cost per mile 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. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded os incorrect.) Voble operating contes Depreciation 2 Automobile tax Lico con 2 Mance.co

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