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Kristen purchased a used automobile with an expected life of 4 years for $10,000 at the beginning of last year and incurred the following operating
Kristen purchased a used automobile with an expected life of 4 years for $10,000 at the beginning of last year and incurred the following operating costs:
Depreciation | $ | 2,500 | |
Insurance | $ | 1,700 | |
Automobile tax and license | $ | 600 | |
Gasoline | $ | 0.20 | per mile |
Other variable operating costs | $ | 0.11 | per mile |
Assuming Kristen drove the car 12,000 miles last year, compute the average cost per mile of owning and operating the car.
a. | 0.40 | |
b. | 0.71 | |
c. | 0.31 | |
d. | 0.11 |
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