Based on the data provided here, calculate the items requested:   Annual depreciation $ 2,500   Annual mileage 13,800 Current year's loan interest $ 670   Miles per gallon 24 Insurance $ 755   License and registration fees $ 90 Average gasoline price $ 4.00 per gallon Oil changes/repairs $ 520 Parking/tolls $ 520         a. Calculate total annual operati

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter14: Pricing Techniques And Analysis
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Based on the data provided here, calculate the items requested:

 

Annual depreciation $ 2,500   Annual mileage 13,800
Current year's loan interest $ 670   Miles per gallon 24
Insurance $ 755   License and registration fees $ 90
Average gasoline price $ 4.00 per gallon Oil changes/repairs $ 520
Parking/tolls $ 520      

 

a. Calculate total annual operating cost of the motor vehicle.

b) What is the operating cost per mile?

 
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