Chapter 6 HW-13 points 00 8 i P Mc Exercise 6-1 (Algo) Identification of Relevant Costs [LO6-1] Kristen Lu purchased a used automobile for $20,650 at the beginning of last year and incurred the following operating costs Depreciation ($20,650 5 years) Insurance Garage Automobile tax and license variable sperating $4,130 $2,200 $1,100 557 The variable operating cost consists of gasoline, oil, tres, maintenance, and repairs. Kristen esumeses that, at her current rate of usage the car will have zero resale value in five years, so the annual straight-ane depreciation is $4.130 The car is kept in a garage for a monthly fee Required: 1. Kristen drove the car 20,000 miles last year Compute the average cost per mile of owning and operating the car Note: Round your answers to 2 decimal places. mie 2 Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What costs above are relevant in this decision? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question merk will be automatically graded as incorrect. Varabe operating costs Option Automoble 177 Save >