Question 2 (10 marks) Data Cost of motor car Trade-in price after two years or 60000 miles is expected to be Maintenance - six-monthly service costing Spares/replacement parts, per 1000 miles Vehicle license, per annum Insurance, per annum Tyre replacements after 25000 miles, four at $37.50 each Petrol, per gallon 6500 2500 60 20 100 200 150 1.90 Average mileage from one gallon is 25 miles. The expected useful life of the motor car is 2 years. Straight-line depreciation is assumed. Required: Prepare a schedule to be presented to management showing for the mileages of 5000, 10000, 15000 and 30000 miles per annum: (1) total variable cost; (2) total fixed cost; (3) total cost; (4) variable cost per mile; (5) fixed cost per mile; (6) total cost per mile If, in classifying the costs, you consider that some can be treated as either variable or fixed, state the assumption(s) on which your answer is based together with brief supporting reason(s). (10 marks) (Total 10 marks) 3