Expense Max LeClerc is considering purchasing a new car. The price of the car is $63000,...

 

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Expense Max LeClerc is considering purchasing a new car. The price of the car is $63000, and Max hopes to keep it 5 years and then sell it for $16600. Based on past experience, Max drives about 19,000 km per year and lives in a downtown apartment where they must pay a $35 per month parking fee. Max has budgeted the following automobile expense items for the next 5 years: Cost Fixed/Variable Gasoline (6.1L Per 100KM) ($2.27 Per Liter) Variable Licence/Registration $666 Fixed Insurance $3615 Fixed Maintenance $4750 Variable Tires ($904 per set that last 64000KM) $ Variable Parking (60 Months) $2100 Fixed Interest $3930 Fixed Depreciation (STRAIGHT LINE) $ Fixed CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION: TOTAL FIXED COSTS (TFC) TOTAL VARIABLE COSTS (TVC) TOTAL COSTS (TC) TOTAL KMS AVG. FIXED COSTS/KM AVG. VARIABLE COSTS/KM AVG. TOTAL COSTS/KM 95000KM Expense Max LeClerc is considering purchasing a new car. The price of the car is $63000, and Max hopes to keep it 5 years and then sell it for $16600. Based on past experience, Max drives about 19,000 km per year and lives in a downtown apartment where they must pay a $35 per month parking fee. Max has budgeted the following automobile expense items for the next 5 years: Cost Fixed/Variable Gasoline (6.1L Per 100KM) ($2.27 Per Liter) Variable Licence/Registration $666 Fixed Insurance $3615 Fixed Maintenance $4750 Variable Tires ($904 per set that last 64000KM) $ Variable Parking (60 Months) $2100 Fixed Interest $3930 Fixed Depreciation (STRAIGHT LINE) $ Fixed CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION: TOTAL FIXED COSTS (TFC) TOTAL VARIABLE COSTS (TVC) TOTAL COSTS (TC) TOTAL KMS AVG. FIXED COSTS/KM AVG. VARIABLE COSTS/KM AVG. TOTAL COSTS/KM 95000KM

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To calculate the total kilometers driven over the 5 years we can multiply the average annual kilomet... View the full answer