You have gathered the following vehicle costs:Vehicle Costs$ 2,600 Annual mileage$ 960 Miles per gallon$ 1,110 Average gasoline price$Annual depreciationCurrent year's loan interest18,30024Insurance2$3.10 per gallon2$448License and registration feesParking/tolls73 Oil changes/repairs$491(a) Calculate the annual variable and fixed costs of the vehicle. (Round answer to nearest whole number.)Variable & Fixed CostsAnnual variable costAnnual fixed cost(b) Compute the operating cost per mile. (Enter your answer in cents rounded to 1 decimal place.)Operating costcents per mile

variable cost is an expense that varies based on no of miles per gallon for a vehicle fixed cost is…

You have gathered the following vehicle costs: Vehicle Costs $ 2,600 Annual mileage $ 960 Miles per gallon $ 1,110 Average gasoline price 73 Oil changes/repairs 2$ Annual depreciation Current year's loan interest 18,300 24 Insurance 24 3.10 per gallon License and registration fees Parking/tolls 448 491 (a) Calculate the annual variable and fixed costs of the vehicle. (Round answer to nearest whole number.) Variable & Fixed Costs Annual variable cost Annual fixed cost (b) Compute the operating cost per mile. (Enter your answer in cents rounded to 1 decimal place.) Operating cost cents per mile

You have gathered the following vehicle costs: Vehicle Costs $ 2,600 Annual mileage $ 960 Miles per gallon $ 1,110 Average gasoline price 73 Oil changes/repairs 2$ Annual depreciation Current year's loan interest 18,300 24 Insurance 24 3.10 per gallon License and registration fees Parking/tolls 448 491 (a) Calculate the annual variable and fixed costs of the vehicle. (Round answer to nearest whole number.) Variable & Fixed Costs Annual variable cost Annual fixed cost (b) Compute the operating cost per mile. (Enter your answer in cents rounded to 1 decimal place.) Operating cost cents 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

See similar textbooks

Similar questions

You have gathered the following vehicle costs: Vehicle Costs Annual depreciation $ 2,800 Annual mileage 16,900 Current year’s loan interest $ 660 Miles per gallon 24 Insurance $ 1,510 Average gasoline price $ 4.65 per gallon License and registration fees $ 68 Oil changes/repairs $ 443 Parking/tolls $ 477 (a) Calculate the annual variable and fixed costs of the vehicle. (Round answer to nearest whole number.) (b) Compute the operating cost per mile. (Enter your answer in cents rounded to 1 decimal place.)
A tire bought for P1, 000 is expected to be useful in travelling 100km after which it can be sold as a scrap for P50.00 (a). The pedometer displays a value of 85km, what is the book value of the tire? (b). How much did the owner need to travel for the tire to amount to P80.00? use the service output method: dn=Na/N (Co-Cl) Cn= Co-Dn
Baird Rentals can purchase a van that costs $110,000; it has an expected useful life of five years and no salvage value. Baird uses straight-line depreciation. Expected revenue is $40,425 per year. Assume that depreciation is the only expense associated with this Investment. Required a. Determine the payback period. Note: Round your answer to 1 decimal place. b. Determine the unadjusted rate of return based on the average cost of the investment. Note: Round your answer to 1 decimal place. (l.e., .234 should be entered as 23.4). a. Payback period b. Unadjusted rate of return years %
Please fully explain
You have just bought a new pusher dozer for your equipmentfleet. Its cost is $100,000. It has an estimated servicelife of four years. Its salvage value is $12,000.a. Calculate the depreciation for the first and second yearusing the straight-line and DDB methods.b. The IIT components of ownership cost based on averageannual value are:Tax: 2%Insurance: 2%Interest: 7%What cost per hour of operation would you charge tocover IIT?
Stuart Rentals can purchase a van that costs $105,000; it has an expected useful life of three years and no salvage value. Stuart uses straight-line depreciation. Expected revenue is $52,220 per year. Assume that depreciation is the only expense associated with this investment. Required a. Determine the payback period. (Round your answer to 1 decimal place.) b. Determine the unadjusted rate of return based on the average cost of the investment. (Round your answer to 1 decimal place. (i.e., .234 should be entered as 23.4).) a. Payback period years b. Unadjusted rate of return %
Use AstroTurf Company's income statement below to answer the following questions. Operating costs (excl. depreciations & amortization): $4.5mDepreciation and amortization: $1.5mInterest: $0.7mNet Income: $2.8mTax Rate: 35%1. Calculate AstroTurf’s EBITDA. Input your final answer here : Explanation: Provide a step-by-step explanation for how you arrived at your above solution as though you were teaching a student to solve this type of problem. Provide a clear explanation, showing any steps or processes used to reach the answer. What level of sales would generate a net income of $4.2m for the following year, knowing that operating costs (excl. depreciation and amortization) will increase by 7.5%, and given a 35% tax rate. Explanation: Provide a step-by-step explanation for how you arrived at your solution as though you were teaching a student to solve this type of problem.
A company is considering two types of equipment with the following informations. Using benefit - cost ratio which equipment must be adopted if money is worth 10% per annum. Туре А P5,000.00 1,250.00 1,080.00- 2,380.00 Туре В MP11,750.00 3,750.00 1,130.00 3,880.00 First Cost Salvage Value Annual Maintenance Cost Annual Benefits Life, years 12 G00.02.
Two plans are available for a company to obtain automobiles for its salesmen. How many miles must the cars be driven each year for the two plans to have the same costs? Use an interest rate of 10%. Plan A: Lease the cars and pay PO.35 per mile. Plan B: Purchase the cars for P11,201 and economic life of three years after which it can be sold for P1,912. Gas and oil cost P0.06 per mile. Insurance is P500 per year.
Determine the hourly owning and operating cost for the third year of operation of the wheel loader described below: Purchase price: $330,000 Expected life: 4 years. Salvage value: $85,000 Tire cost: $32,000 Load Conditions: Average Operating conditions: Average Fuel Cost: $2.07/gal. Hours operating: 1500/yr. Investment rate: 15% Tax, storage rate: 10% Straight line depreciation
Subject: accounting
An organization is trying to decide between two miling machines (standard or delue) for a manufacturing operation. Use present worth analysis and an interest rate of iR lo detes milling machine is preferred from an economic perspective. iR=25% R=4

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS