Question: Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven142,000miles. Taxi no. 10 cost $32,000and

Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven142,000miles. Taxi no. 10 cost $32,000and is expected to have a salvage value of $720. Taxi no. 10 is driven35,500miles in year 1 and25,000miles in year 2.

Calculate depreciation cost per mile using unit-of-activity method.

Depreciation cost __$___________________- per mile

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