Kristen Lu purchased a used automobile for $8,000 at the beginning of last year and incurred the following operating costs. Depreciation ($8,000 + 5 years) Insurance Garage rent Automobile tax and license Variable operating cost $1,600 $ 1,200 $ 360 $40 $ 0.14 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates, at her current rate of usage car will have zero resale value in five years, so the annual straight-line depreciation is $1,600. The car is kept in a garage for a mo Fee. Average fixed cost per mile Variable operating cost per mile Average cost per mille Required: 1. Kristen drove the car 10,000 miles last year. Compute the average cost per mile of owning and operating the car. Note: Round your answers to 2 decimal places.

Kristen Lu purchased a used automobile for $8,000 at the beginning of last year and incurred the following operating costs. Depreciation ($8,000 + 5 years) Insurance Garage rent Automobile tax and license Variable operating cost $1,600 $ 1,200 $ 360 $40 $ 0.14 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates, at her current rate of usage car will have zero resale value in five years, so the annual straight-line depreciation is $1,600. The car is kept in a garage for a mo Fee. Average fixed cost per mile Variable operating cost per mile Average cost per mille Required: 1. Kristen drove the car 10,000 miles last year. Compute the average cost per mile of owning and operating the car. Note: Round your answers to 2 decimal places.

Name: Exercise 13-1 (Static) Identification of Relevant Costs [LO13-1]Krist
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Description: Exercise 13-1 (Static) Identification of Relevant Costs [LO13-1]Kristen Lu purchased a used automobile for $8,000 at the beginning of last year and incurred the following operating costs:Depreciation ($8,000 + 5 years)InsuranceGarage rentAutomobile

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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