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Kristen Lu purchased a used automobile for $20,250 at the beginning of last year and incurred the following operating costs: Depreciation ($20,250 5 years) $

Kristen Lu purchased a used automobile for $20,250 at the beginning of last year and incurred the following operating costs: Depreciation ($20,250 5 years) $ 4,050 Insurance $ 2,100 Garage rent $ 1,100 Automobile tax and license $ 550 Variable operating cost $ 0.14 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $4,050. The car is kept in a garage for a monthly fee. Required: Kristen drove the car 26,000 miles last year. Compute the average cost per mile of owning and operating the car. Note: Round your answers

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