Kristen Lu purchased a used automobile for $25,950 at the beginning of last year and incurred the following operating costs: Depreciation ($25,950 + 5 years) $ 5,190 $ 2,700 Insurance. Garage rent $ 1,400 Automobile tax and license $ 710 Variable operating cost $ 0.06 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 $5,190. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 20,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Average fixed cost per mile Variable operating cost per mile Average cost per mile 25,400.00 $1,200.00 26,600.00

Kristen Lu purchased a used automobile for $25,950 at the beginning of last year and incurred the following operating costs: Depreciation ($25,950 + 5 years) $ 5,190 $ 2,700 Insurance. Garage rent $ 1,400 Automobile tax and license $ 710 Variable operating cost $ 0.06 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 $5,190. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 20,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Average fixed cost per mile Variable operating cost per mile Average cost per mile 25,400.00 $1,200.00 26,600.00

Name: Kristen Lu purchased a used automobile for $25,950 at the beginning o
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Description: Kristen Lu purchased a used automobile for $25,950 at the beginning of last year and incurred the following operating costs:Depreciation ($25,950+ 5 years)$ 5,190$ 2,700Insurance.$ 1,400$ 710$ 0.06 per mileGarage rentAutomobile tax and licenseVariab

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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A.3.
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