From the following data calculate the cost per mile of a vehicle :- Value of vehicle $15,000 Road license for the year $500 Insurance charges per year $100 Garage rent per year $600 Drivers’ wages per month $200 Cost of petrol per litre $0.80 Miles per litre. 8 Proportional

From the following data calculate the cost per mile of a vehicle :- Value of vehicle $15,000 Road license for the year $500 Insurance charges per year $100 Garage rent per year $600 Drivers’ wages per month $200 Cost of petrol per litre $0.80 Miles per litre. 8 Proportional

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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Question

From the following data calculate the cost per mile of a vehicle :-

Value of vehicle $15,000

Road license for the year $500

Insurance charges per year $100

Garage rent per year $600

Drivers’ wages per month $200

Cost of petrol per litre $0.80

Miles per litre. 8

Proportional charge for tyre and maintenance per mile $0.20

Estimated life 150,000 miles

Ignore interest on capital.

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