You have gathered the following vehicle costs:
Vehicle Costs
Annual depreciation
Current year's loan interest
Insurance
License and registration fees
Parking/tolls
Variable & Fixed Costs
Annual variable cost
Annual fixed cost
(a) Calculate the annual variable and fixed costs of the vehicle. (Round answer to nearest whole number.)
$2,300 Annual mileage
$1,200 Miles per gallon
Operating cost
$
700 Average gasoline price
$ 74 Oil changes/repairs
$ 514
cents per mile
18,900
24
$ 2.15 per gallon
$
405
(b) Compute the operating cost per mile. (Enter your answer in cents rounded to 1 decimal place.)
