Kristen Lu purchased a used automobile for $13,200 at the beginning of last year and incurred thefollowing operating costs: Depreciation ($13,200 - 5 years) $ 2,640 Insurance $ 1,400 Garagerent $ 700 Automobile tax and license $ 360 Variable operating cost $ 0.08 per mile The variableoperating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, ather current rate of usage, the car will have zero resale value in five years, so the annual straight -line depreciation is $2,640. The car is kept in a garage for a monthly fee. Required: 1. Kristendrove the car 17,000 miles last year. Compute the average cost per mile of owning and operatingthe car. (Round your answers to 2 decimal places.)

Average cost per mile$0.38 THANK YOU

Answered: Kristen Lu purchased a used automobile…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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