Question

An accountant executive had car expenses of $1025.58 for insurance, $1805.82 for gas, $37.92 for oil, and $288.27 for maintenance during the year in which 11,320 miles were driven. Find the cost per mile for these four items taken as a group. Round to the nearest tenth of a cent.

Answer 1

Answer:

The cost per mile for each and all the expenses is;

$\begin{gathered} \text{For insurance: = 9.1 cents/mile} \\ \text{For gas: = 16.0 cents/mile} \\ \text{ For oil: = 0.3 cents/mile} \\ \text{ For maintenance: = 2.5 cents/mile} \\ \text{ Total cost per mile: = 27.9 cents/mile} \end{gathered}$

Explanation:

Given that;

An accountant executive had car expenses of $1025.58 for insurance, $1805.82 for gas, $37.92 for oil, and $288.27 for maintenance during the year.

The sum of the four expenses is;

$\begin{gathered} T=\text{ \ 1025.58 + \ 1805.82 + \ 37.92 + \ 288.27} \\ T=\text{ \ 3157.59} \end{gathered}$

During the year it travels 11,320 miles.

The cost per mile for each of the items are;

For Insurance;

$\begin{gathered} \frac{\text{ \ }1025.58}{11320} \\ =\text{ \ 0.09 per mile} \\ =9.1\text{ cents/mile} \end{gathered}$

For gas;

$\begin{gathered} \frac{\text{ \ 1805.82}}{11320} \\ =\text{ \ 0.1595 per mile} \\ =16.0\text{ cent/mile} \end{gathered}$

For oil;

$\begin{gathered} \frac{\text{ \ 37.92}}{11320} \\ =0.0033 \\ =0.3\text{ cents/mile} \end{gathered}$

For maintenance;

$\begin{gathered} \frac{\text{ \ 288.27}}{11320} \\ =0.0254 \\ =2.5\text{ cents/mile} \end{gathered}$

The total cost per mile will be;

$\begin{gathered} \frac{\text{ \ 3157.59}}{11320} \\ =0.2789 \\ =27.9\text{ cents/mile} \end{gathered}$

The cost per mile for each and all the expenses is;

$\begin{gathered} \text{For insurance: = 9.1 cents/mile} \\ \text{For gas: = 16.0 cents/mile} \\ \text{ For oil: = 0.3 cents/mile} \\ \text{ For maintenance: = 2.5 cents/mile} \\ \text{ Total cost per mile: = 27.9 cents/mile} \end{gathered}$