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Exercise 12-11 (Algo) Estimating costs based on behavior patterns LO 3 Larry estimates that the costs of insurance, license, and depreciation to operate his car total $450 per month and that the gas, oil, and maintenance costs are 39 cents per mile. Larry also estimates that, on average, he drives his car 2,000 miles per month.          Required: a. How much cost would Larry expect to incur during April if he drove the car 1,519 miles? (Round your answer to 2 decimal places.)   b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 2,000-mile month? multiple choice Yes no

Exercise 12-11 (Algo) Estimating costs based on behavior patterns LO 3 Larry estimates that the costs of insurance, license, and depreciation to operate his car total $450 per month and that the gas, oil, and maintenance costs are 39 cents per mile. Larry also estimates that, on average, he drives his car 2,000 miles per month.          Required: a. How much cost would Larry expect to incur during April if he drove the car 1,519 miles? (Round your answer to 2 decimal places.)   b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 2,000-mile month? multiple choice Yes no

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 12-11 (Algo) Estimating costs based on behavior patterns LO 3

Larry estimates that the costs of insurance, license, and depreciation to operate his car total $450 per month and that the gas, oil, and maintenance costs are 39 cents per mile. Larry also estimates that, on average, he drives his car 2,000 miles per month.   
     

Required:

a. How much cost would Larry expect to incur during April if he drove the car 1,519 miles? (Round your answer to 2 decimal places.)

 


b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 2,000-mile month?

multiple choice
  • Yes
    no

 

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