Kristen Lu purchased a used automobile for $ at the beginning of last year and incurred the following operating costs:
Depreciation $: years $
Insurance $
Garage rent for parking $
Automobile registration $
Gasoline, oil, tires, and repairs $ per km
Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straightline depreciation is $ The car is kept in a garage for a monthly fee.
Required:
Kristen drove the car kilometres last year. Compute the average cost per kilometre of owning and operating the car.
Note: Round your answer to decimal places.
Kristen is unsure about whether she should use her own car or rent a car to go on an extended crosscountry trip for two weeks during spring break. Which of the following costs this relevant in this decision?
multiple choice
Variable operating costs
Depreciation
Automobile tax
License costs
Insurance costs
This part of the question is not part of your Connect assignment.
