Answer:
cost per mile = $ 0.143
Step-by-step explanation:
Market value of car after 1 year = $3,800
Loss = $5,000.00 - $3,800
= $ 1200
Total cost of the car = 1200 + 750 + 250 + 300
= 2500
cost per mile = 2500 /17500 = 0.143
Answer:
Cost per mile is 0.143.
Step-by-step explanation:
Cost of car = $5,000
Market value after 1 year = $3,800
Depreciation amount = [tex]5000-3800=1200[/tex]
Cost of gas and oil = $750
Repairs/Maintenance = $250
Insurance = $300
Total costing of the car becomes= [tex]1200+750+250+300=2500[/tex]
Miles driven = 17,500
To find the cost per mile, we will divide the total costing by number of miles driven.
[tex]\frac{2500}{17500}= 0.1428[/tex]≈ 0.143
Hence, cost per mile is 0.143.
