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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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