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Kristen Lu purchased a used automobile for $20,650 at the beginning of last year and incurred the following operating costs: The variable operating cost consists
Kristen Lu purchased a used automobile for $20,650 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 $4,130. The car is kept in a garage for a monthly fee. Requlred: 1. Kristen drove the car 20,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 declmal 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. SIngle cllek the box with the questlon mark to produce a check mark for a correct answer and double cllck the box with the questlon mark to empty the box for a wrong answer. Any boxes left wlth a questlon mark will be outomatleally graded as lncorrect.) Varlable operating costs Depreclation Automobile tax License costs Insurance costs
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