Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kristen Lu purchased a used automobile for $25,100 at the beginning of last year and incurred the following operating costs: Depreciation ($25,100 5 years) $5,020

image text in transcribed

Kristen Lu purchased a used automobile for $25,100 at the beginning of last year and incurred the following operating costs: Depreciation ($25,100 5 years) $5,020 $2,600 $ 1,300 Insurance Garage rent Automobile tax and license 680 $0.14 per mile Variable operat ing cost 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 $5,020. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 24,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) Average fixed cost per mile Variable operating cost per mile 0.00 Average cost per mile

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Making Use Of Clinical Audit A Guide To Practice In The Health Professions

Authors: Sally J. Redfern, Anemone Kober, Maurice Kogan

1st Edition

0335195423, 978-0335195428

More Books

Students also viewed these Accounting questions

Question

please dont use chat gpt AI 9 0 . ' '

Answered: 1 week ago

Question

1. Define and explain culture and its impact on your communication

Answered: 1 week ago