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Kristen Lu purchased a used automobile for $30,400 at the beginning of last year and incurred the following operating costs: Depreciation ($38,489 5 years) Insurance
Kristen Lu purchased a used automobile for $30,400 at the beginning of last year and incurred the following operating costs: Depreciation ($38,489 5 years) Insurance Garage rent Automobile tax and license Variable operating cost 6,888 3,188 s1,688 $ 828 $ 8.13 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 $6,080. The car is kept in a garage for a monthly fee. Requlrec 1. Kristen drove the car 29,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 declmel pleces.) Average fixed cost per mile Variable operating cost per mile 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? Assume that there is no decrease in the resale value of the car due to its use. (You may select more than one answer. Single cllck the box with the questlon mark to produce a check merk 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 wlll be autometically graded as Incorrect.) Varlable operating costs 7 Depreclation 2 License costs Insurance costs
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