You have gathered the following vehicle costs: Vehicle Costs Annual depreciation Current year's loan interest Insurance License and registration fees Parking and tolls Annual mileage Miles per gallon Average gasoline price Oil changes and repairs $3,900 $ 1,450 $ 1,410 $ 66 $ 424 19,300 24 $ 3.40 per gallon $ 438 a. Calculate the annual variable and fixed costs of the vehicle. b. Compute the operating cost per mile.
You have gathered the following vehicle costs: Vehicle Costs Annual depreciation Current year's loan interest Insurance License and registration fees Parking and tolls Annual mileage Miles per gallon Average gasoline price Oil changes and repairs $3,900 $ 1,450 $ 1,410 $ 66 $ 424 19,300 24 $ 3.40 per gallon $ 438 a. Calculate the annual variable and fixed costs of the vehicle. b. Compute the operating cost per mile.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Problem 8-8 Calculating Motor Vehicle Operating Costs [LO8-2]
You have gathered the following vehicle costs:
Vehicle Costs
Annual depreciation
Current year's loan interest
Insurance
License and registration fees
Parking and tolls
Annual mileage
Miles per gallon
Average gasoline price
Oil changes and repairs
a. Calculate the annual variable and fixed costs of the vehicle.
b. Compute the operating cost per mile.
Required a
Complete this question by entering your answers in the tabs below.
Required b
Operating
cost
$ 3,900
$ 1,450
$ 1,410
$ 66
$ 424
19,300
24
$ 3.40 per gallon
$438
0.5 X
Compute the operating cost per mile.
Note: Do not round intermediate calculations. Enter your answer in cents rounded to 1 decimal place.
cents per
mile
Answer is complete but not entirely correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2756f63e-8845-4ca6-8aba-1481c5a2f900%2Fa72839b0-b132-46c3-9c66-05c52e5ad7da%2Ftfz0ekp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 8-8 Calculating Motor Vehicle Operating Costs [LO8-2]
You have gathered the following vehicle costs:
Vehicle Costs
Annual depreciation
Current year's loan interest
Insurance
License and registration fees
Parking and tolls
Annual mileage
Miles per gallon
Average gasoline price
Oil changes and repairs
a. Calculate the annual variable and fixed costs of the vehicle.
b. Compute the operating cost per mile.
Required a
Complete this question by entering your answers in the tabs below.
Required b
Operating
cost
$ 3,900
$ 1,450
$ 1,410
$ 66
$ 424
19,300
24
$ 3.40 per gallon
$438
0.5 X
Compute the operating cost per mile.
Note: Do not round intermediate calculations. Enter your answer in cents rounded to 1 decimal place.
cents per
mile
Answer is complete but not entirely correct.
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