Question
You have gathered the following vehicle costs: Vehicle CostsAnnual depreciation$2,900Annual mileage17,300Current year's loan interest$950Miles per gallon24Insurance$720Average gasoline price$2.95per gallonLicense and registration fees$66Oil changes/repairs$450Parking/tolls$432 (a) Calculate
You have gathered the following vehicle costs:
Vehicle CostsAnnual depreciation$2,900Annual mileage17,300Current year's loan interest$950Miles per gallon24Insurance$720Average gasoline price$2.95per gallonLicense and registration fees$66Oil changes/repairs$450Parking/tolls$432
(a)Calculate theannualvariable and fixed costs of the vehicle.
(b)Compute the operating cost per mile.(Enter your answer in cents rounded to 1 decimal place.)
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
