Louise Marsh is a student at State University. Recently, she purchased a used car for P 50,000 cash. Being concerned about the costs of owning and operating a car, she prepared the following estimates: License fees and taxes-P500 per year Maintenance and repairs - P2,500 Insurance - P2,500 per year Tires - P 2,400 per set of four, the useful life of tires-15,000 km, Cost of petrol - P 0.90 per km. Annual mileage to be driven 10,000 km. Also, Marsh expects to keep the car for three years and sell it for 5,000. She bought a set of new tires for the car during the first week of ownership and does not intend to replace tires at the time of final sale. Required: What is the full cost of a car-km for Marsh's automobile?

Louise Marsh is a student at State University. Recently, she purchased a used car for P 50,000 cash. Being concerned about the costs of owning and operating a car, she prepared the following estimates: License fees and taxes-P500 per year Maintenance and repairs - P2,500 Insurance - P2,500 per year Tires - P 2,400 per set of four, the useful life of tires-15,000 km, Cost of petrol - P 0.90 per km. Annual mileage to be driven 10,000 km. Also, Marsh expects to keep the car for three years and sell it for 5,000. She bought a set of new tires for the car during the first week of ownership and does not intend to replace tires at the time of final sale. Required: What is the full cost of a car-km for Marsh's 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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