Exercise 11-14 (Algo) Identification of Relevant Costs [LO11-1] Gristen Lu purchased a used automobile for...
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Exercise 11-14 (Algo) Identification of Relevant Costs [LO11-1] Gristen Lu purchased a used automobile for $37,850 at the beginning of last year and incurred the following operating costs: The varlable operating cost consists of gasoline, oll, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in flue years, so the annual straight-line depreciation is $7,570. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 29.000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks duting spring break. What costs above are relevant in this decision? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Vatiable operating costs Depreciation Automobile tax License costs Insuance costs
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