Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kristen lu purchased a used automobile for $8,350

Kristen Lu purchased a used automobile for $8,350 at the beginning of last year and...

90.2K

Verified Solution

Question

Accounting

Kristen Lu purchased a used automobile for $8,350 at the beginning of last year and incurred the following operating costs:

Depreciation ($8,350 5 years) $ 1,670
Insurance $ 900
Garage rent $ 500
Automobile tax and license $ 230
Variable operating cost $ 0.08 per mile

The 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 $1,670. The car is kept in a garage for a monthly fee.

Required:

1. Kristen drove the car 11,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

12.) The most common term for a consumption tax is: wealth tax. progressive tax. sales tax. income tax. QUESTION 13 Which...

Basic Math
1.2K views

Consider the solid that lies above the rectangle (in the xy-plane) R=[−2,2]×[0,2], and below the surface z=x2−4y+8. (A)...

Basic Math
1.2K views

9 What do the x intercepts of the graph represent in the context of the...

Basic Math
1.2K views

An investment company advertised that last year its clients on average made a profit of...

Calculus
1.2K views

ind the equation of a line in 3D what do you need Slope of the...

Algebra
1.2K views

ulate det 45 A 1 2 1 0 17 1 1 20

Accounting
1.2K views

6 From a cash receipts standpoint, mandating that a single designated employee is authorized to...

Accounting
1.2K views

True or false: The gross earnings for all employees is credited to Salaries and wages...

Accounting
1.2K views

During the past month, the following costs were incurred in the three production departments and...

Accounting
1.2K views

Using the financial statements, compute the following for the most recent two years ...

Accounting
1.2K views

\table[[Allied Construction,2024,2023],[Sales,$55,000,$49,000 My asset turnover for NEED HELP WITH #2

Finance
1.2K views

You plan to place money in an investment that will pay 14.4% per year compounded...