From the below data you are required:

a) Manually calculate the following costs:

Total variable cost, Total fixed cost, Total cost, Variable cost per mile, Fixed cost per mile and Total cost per mile. 

The latter three costs should be shown to the nearest penny.

For zero, 5,000 and 10,000 miles per annum.

b) Test your spreadsheet skills by preparing a model to analyse the data above for each of the following mileages:

Zero, 5,000, 10,000, 15,000 and 30,000 miles per annum:

Data: 

Cost of motor car £10,000

Trade-in price after 2 years or 60,000 miles £2,000

Maintenance (6 monthly servicing) £120

Spares (per 1,000 miles) £40

Road Tax (per annum) £150

Insurance (per annum) £450

Tyres (after 25,000 miles) £60

Petrol (per gallon) £2.10

Petrol consumption is 25 mpg.

Answer rating: 100% (QA)

a Manually calculating the costs Total Variable Cost To calculate the total variable cost we need to consider the costs that vary with the number of miles driven In this case the variable costs are Ma... View the full answer