- How much cost would Larry expec laces.) Answer is complete but not ent Total cost 1,070.49

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.)
Answer is complete but not entirely correct.
Total cost
1,070.49
b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 2,000-mile month?
Yes
O No
Transcribed Image Text: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.) Answer is complete but not entirely correct. Total cost 1,070.49 b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 2,000-mile month? Yes O No
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