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Kristen Lu purchased a used automobile for $31,250 at the beginning of last year and...

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Accounting

Kristen Lu purchased a used automobile for $31,250 at the beginning of last year and incurred the following operating costs: Depreciation ($31,250 5 years)$ 6,250 Insurance$ 3,200 Garage rent$ 1,700 Automobile tax and license$ 850 Variable operating cost$ 0.09per mileThe variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $6,250. The car is kept in a garage for a monthly fee. Required: Kristen drove the car 30,000 miles last year. Compute the average cost per mile of owning and operating the car. Note: Round your answers to 2 decimal places

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