Kristen Lu purchased a used automobile for $13,200 at the beginning of last year and incurred thefollowing operating costs: Depreciation ($13,200 - 5 years) $ 2,640 Insurance $ 1,400 Garagerent $ 700 Automobile tax and license $ 360 Variable operating cost $ 0.08 per mile The variableoperating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, ather current rate of usage, the car will have zero resale value in five years, so the annual straight -line depreciation is $2,640. The car is kept in a garage for a monthly fee. Required: 1. Kristendrove the car 17,000 miles last year. Compute the average cost per mile of owning and operatingthe car. (Round your answers to 2 decimal places.)

Average cost per mile$0.38 THANK YOU

Answered: Kristen Lu purchased a used automobile…

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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Kristen Lu purchased a used automobile for $25,100 at the beginning of last year and incurred the following operating costs: Depreciation ($25,100 ÷ 5 years) $ 5,020 Insurance Garage rent Automobile tax and license Variable operating cost $ 2,600 $ 1,300 $ 680 $ 0.14 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $5,020. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 24,000 miles last year. Compute the average cost per mile of owning and operating the car. Note: Round your answers to 2 decimal places. Average fixed cost per mile $ 0.40 Variable operating cost per mile Average cost per mile $ 0.14 $ 0.54 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What…
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Please help me solve both questions
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s Kristen Lu purchased a used automobile for $28,150 at the beginning of last year and incurred the following operating costs: Depreciation ($28,150+ 5 years) Insurance Garage rent Automobile tax and license Variable operating cost $ 5,630 $ 2,900 $ 1,500 $ 770 $ 0.07 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $5,630. The car is kept in a garage for a monthly fee. Average fixed cost per mile Variable operating cost per mile Average cost per mile Required: 1. Kristen drove the car 27,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.)

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