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You have gathered the following vehicle costs: Vehicle Costs Annual depreciation $ 3,900 Annual mileage 17,700 Current years loan interest $ 1,380 Miles per gallon

You have gathered the following vehicle costs:

Vehicle Costs
Annual depreciation $ 3,900 Annual mileage 17,700
Current years loan interest $ 1,380 Miles per gallon 24
Insurance $ 1,200 Average gasoline price $ 2.50 per gallon
License and registration fees $ 73 Oil changes/repairs $ 469
Parking/tolls $ 471

(a) Calculate the annual variable and fixed costs of the vehicle

annual variable cost_____

annual fixed cost_______ (b) Compute the operating cost per mile.

Operating cost__________ cents per mile.

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