You have gathered the following vehicle costs: Vehicle Costs Annual depreciation Current year's loan interest Insurance License and registration fees Parking and tolls Annual mileage Miles per gallon Average gasoline price Oil changes and repairs $3,900 $ 1,450 $ 1,410 $ 66 $ 424 19,300 24 $ 3.40 per gallon $ 438 a. Calculate the annual variable and fixed costs of the vehicle. b. Compute the operating cost per mile.

You have gathered the following vehicle costs: Vehicle Costs Annual depreciation Current year's loan interest Insurance License and registration fees Parking and tolls Annual mileage Miles per gallon Average gasoline price Oil changes and repairs $3,900 $ 1,450 $ 1,410 $ 66 $ 424 19,300 24 $ 3.40 per gallon $ 438 a. Calculate the annual variable and fixed costs of the vehicle. b. Compute the operating cost per mile.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 56E: (Appendix 3A) Method of Least Squares Using Computer Spreadsheet Program Susan Lewis, owner of a...

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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 (a) Calculate the annual variable and fixed costs of the vehicle. (Round answer to nearest whole number.) Annual variable cost Annual fixed cost $3,600 Annual mileage $1,570 Miles per gallon $1,180 Average gasoline price S 68 011 changes/repairs $463 Operating cost 19,000 24 $ 3.70 per gallon S 465 (b) Compute the operating cost per mile (Enter your answer in cents rounded to 1 decimal place.) conts por milo
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