Question: Monty Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 145,000 miles. Taxi no. 10

Monty Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 145,000 miles. Taxi no. 10 cost $39,000 and is expected to have a salvage value of $1,300. Taxi no. 10 is driven 31,000 miles in year 1 and 21,000 miles in year 2.

(1) Calculate depreciable cost per mile using unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

Depreciable cost = $ _____ per mile ?

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