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3 September, 00:45

Based on the data provided here, calculate the items requested: annual depreciation $ 2,500 annual mileage 14,160 current year's loan interest $ 690 miles per gallon 24 insurance $ 800 license and registration fees $ 105 average gasoline price $ 3.50 per gallon oil changes/repairs $ 610 parking/tolls $ 580

a. calculate total annual operating cost of the motor vehicle. total variable cost $

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Answers (2)
  1. 3 September, 00:46
    0
    total operating cost = $7350 variable cost = $3255

    Explanation:

    Annual depreciation = $2500

    Annual mileage = 14160

    current year loan interest = $690

    miles per gallon = 24

    insurance = $800

    license and registration = $105

    average gasoline price = $3.5 per gallon

    oil changes/repairs = $610

    parking / toll $580

    The total annual operating cost = total fixed cost + total variable cost

    total fixed cost = annual depreciation + loan interest + insurance + license

    = $2500 + $690 + $800 + $105 = $4095

    variable cost = parking + oil changes/repairs + gasoline price

    gasoline price = (annual mileage / miles per gallon) * average gasoline price

    = (14160/24) * $3.5 = $2065

    back to variable cost = $580 + $610 + $2065 = $3255

    therefore total annual operating cost = $4095 + $3255 = $7350
  2. 3 September, 00:51
    0
    Total annual operating cost of the motor vehicle is $7,350 and total variable cost is $3,255

    Explanation:

    annual depreciation $ 2,500

    annual mileage 14,160

    current year's loan interest $ 690

    miles per gallon 24

    insurance $ 800

    license and registration fees $ 105

    average gasoline price $ 3.50 per gallon

    oil changes/repairs $ 610

    parking/tolls $ 580

    The total cost of operating the vehicle will be sum of fixed and variable costs.

    Fixed Cost:

    Depreciation: 2,500

    Loan Interest: 690

    Insurance: 800

    License & Registration Fees: 105

    Total Fixed Cost: 2,500 + 690 + 800 + 105 = $4,095

    Variable Cost:

    Parking Tolls: 580

    Gasoline: 2,065 (Total miles/Miles Gallon=Total Gallons; 14,160/24=

    590 Gallons, total gallons x cost/gallon = total gasoline cost; 590 x 3.50)

    Oil Change Repairs = 610

    Total Variable cost: 580 + 2,065 + 610 = $3,255

    Total cost of operating motor vehicle:

    Fixed + Variable: $4,095 + $3,255 = $7,350
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Home » Business » Based on the data provided here, calculate the items requested: annual depreciation $ 2,500 annual mileage 14,160 current year's loan interest $ 690 miles per gallon 24 insurance $ 800 license and registration fees $ 105 average gasoline price $ 3.
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