Question: Based on the data provided here, calculate the items requested: Annual depreciation $ 2 , 5 0 0 Annual mileage 1 3 , 2 0

Based on the data provided here, calculate the items requested:
Annual depreciation $ 2,500 Annual mileage 13,200
Current year's loan interest $ 650 Miles per gallon 24
Insurance $ 680 License and registration fees $ 65
Average gasoline price $ 3.50 per gallon Oil changes/repairs $ 370
Parking/tolls $ 420
a. Calculate total annual operating cost of the motor vehicle.
Total Variable Cost Total Fixed cost Total annual operating cost
b. Calculate operating cost per mile. (Round your answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!