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Swan Exercise 11-14 Identification of Relevant Costs [LO11-1) Kristen Lu purchased a used automobile for $19,300 at the beginning of tast year and incurred the
Swan Exercise 11-14 Identification of Relevant Costs [LO11-1) Kristen Lu purchased a used automobile for $19,300 at the beginning of tast year and incurred the following operating costs: Depreciation ($19,300 - 5 years) Insurance Garage rent Automobile tax and I canse Variable operating cost $ 3,860 $ 2,100 $1,100 $ 0.05 per side The variable operating cost consists of gasoline, oll 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 $3,860. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 19,000 miles lost your compute the average cost per mile of owning and operating the car, (Round your answers to 2 decimal places.) Average foxed cost per milo Variable operating cont per mile Average cost per mile
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