Jim Smith is considering purchasing a new car. The price of the car is $51000, and Jim hopes to keep it 6 years and then sell it for $12500. Based on past experience, Jim drives about 20,000 km per year and lives in a downtown K apartment where they must pay a $22 per month parking fee. Jim has budgeted the following automobile expense items for the next 6 years: Expense Gasoline(10.5L Per 100KM) ($1.96 Per Liter) Licence/Registration Insurance Maintenance Tires ($1332 per set that last 70000KM) Parking (72 Months) Interest Depreciation (STRAIGHT LINE) Cost Fixed/Variable Variable $754 Fixed $5445 Fixed $6000 Variable Variable $1584 $3670 Fixed Fixed CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION: TOTAL FIXED COSTS (TFC) TOTAL KMS TOTAL VARIABLE COSTS (TVC) TOTAL COSTS (TC) AVG. FIXED COSTS/KM AVG. VARIABLE COSTS/KM AVG. TOTAL COSTS/KM Fixed 120000KM
Jim Smith is considering purchasing a new car. The price of the car is $51000, and Jim hopes to keep it 6 years and then sell it for $12500. Based on past experience, Jim drives about 20,000 km per year and lives in a downtown K apartment where they must pay a $22 per month parking fee. Jim has budgeted the following automobile expense items for the next 6 years: Expense Gasoline(10.5L Per 100KM) ($1.96 Per Liter) Licence/Registration Insurance Maintenance Tires ($1332 per set that last 70000KM) Parking (72 Months) Interest Depreciation (STRAIGHT LINE) Cost Fixed/Variable Variable $754 Fixed $5445 Fixed $6000 Variable Variable $1584 $3670 Fixed Fixed CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION: TOTAL FIXED COSTS (TFC) TOTAL KMS TOTAL VARIABLE COSTS (TVC) TOTAL COSTS (TC) AVG. FIXED COSTS/KM AVG. VARIABLE COSTS/KM AVG. TOTAL COSTS/KM Fixed 120000KM
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Jim Smith is considering purchasing a new car. The price of the car is $51000, and Jim hopes to keep it 6 years and then sell it for $12500. Based on past experience, Jim drives about 20,000 km per year and lives in a downtown
K apartment where they must pay a $22 per month parking fee. Jim has budgeted the following automobile expense items for the next 6 years:
Expense
Gasoline(10.5L Per 100KM) ($1.96 Per Liter)
Licence/Registration
Insurance
Maintenance
Tires ($1332 per set that last 70000KM)
Parking (72 Months)
Interest
Depreciation (STRAIGHT LINE)
Cost
Fixed/Variable
Variable
$754
Fixed
$5445
Fixed
$6000
Variable
Variable
$1584
$3670
Fixed
Fixed
CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION:
TOTAL FIXED COSTS (TFC)
TOTAL KMS
TOTAL VARIABLE COSTS (TVC)
TOTAL COSTS (TC)
AVG. FIXED COSTS/KM
AVG. VARIABLE COSTS/KM
AVG. TOTAL COSTS/KM
Fixed
120000KM
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education