Exercise 13-14 (Algo) Identification of Relevant Costs [LO13-1] Kristen Lu purchased a used automobile for $35,200 at the beginning of last year and incurred the following operating costs: Depreciation ($35,200+ 5 years) Insurance Garage rent Automobile tax and license Variable operating cost 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 $7,040. The car is kept in a garage for a monthly fee. Average fixed cost per mile Variable operating cost per mile Average cost per mile $7,040 $ 3,600 $ 1,900 Required: 1. Kristen drove the car 27,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) $ $ 960 $ 0.15 per mile. 0.00

Exercise 13-14 (Algo) Identification of Relevant Costs [LO13-1] Kristen Lu purchased a used automobile for $35,200 at the beginning of last year and incurred the following operating costs: Depreciation ($35,200+ 5 years) Insurance Garage rent Automobile tax and license Variable operating cost 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 $7,040. The car is kept in a garage for a monthly fee. Average fixed cost per mile Variable operating cost per mile Average cost per mile $7,040 $ 3,600 $ 1,900 Required: 1. Kristen drove the car 27,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) $ $ 960 $ 0.15 per mile. 0.00

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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