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You have gathered the following vehicle costs: Vehicle Costs Annual depreciation $ 3,600 Annual mileage 20,500 Current years loan interest $ 900 Miles per gallon
You have gathered the following vehicle costs:
| Vehicle Costs | ||||||||
| Annual depreciation | $ | 3,600 | Annual mileage | 20,500 | ||||
| Current years loan interest | $ | 900 | Miles per gallon | 24 | ||||
| Insurance | $ | 1,570 | Average gasoline price | $ | 4.25 | per gallon | ||
| License and registration fees | $ | 71 | Oil changes/repairs | $ | 394 | |||
| Parking/tolls | $ | 440 | ||||||
(a) Calculate the annual variable and fixed costs of the vehicle. (Round answer to nearest whole number.)
(b) Compute the operating cost per mile. (Enter your answer in cents rounded to 1 decimal place.)
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