Question: Many costs are associated with owning a car. Assuming that miles driven is the volume activity, classify each of the following costs associated with car
Many costs are associated with owning a car. Assuming that miles driven is the volume activity, classify each of the following costs associated with car ownership as mainly variable or fixed.
a. Purchase price of the car $25,000
b. Finance charges on car loan
c. Gas
d. Oil changes every 5,000 miles
e. Replacement tires
f. Insurance costs of $100 per month
g. License plate/registration of $200 per year
h. SiriusXM Radio subscription cost
i. Car washes (one per week)
j. Monthly parking fees for work lot
k. Traffic violation ticket
a. Purchase price of the car $25,000
b. Finance charges on car loan
c. Gas
d. Oil changes every 5,000 miles
e. Replacement tires
f. Insurance costs of $100 per month
g. License plate/registration of $200 per year
h. SiriusXM Radio subscription cost
i. Car washes (one per week)
j. Monthly parking fees for work lot
k. Traffic violation ticket
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