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You and your sibling share the use of an old car. Your parents "gave" you...

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Accounting

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You and your sibling share the use of an old car. Your parents "gave" you the car, but the two of you had to pay all of the bills. Big Picture Question for today: How do you fairly allocate the costs in the problem? In 2016 your parents covered the costs, but kept track of the costs for you. The two of you combined drove 10,000 miles in 2016 and accumulated the following costs: 2016 COSTS $660 GAS $450 REPAIRS $120 MISCELLANEOUS TOTAL $1230 1. Assume that in 2017 costs are again expected to be $1230 and 10,000 miles driven. You also expect to drive twice as much as your sibling. To split costs in 2017, you come up with a per mile rate. What is the per mile rate you should each pay toward expenses in 2017? 2. Based on this rate, how much do you each pay in 2017? 3. Instead, now consider that in 2017 you will still drive the same 10,000 miles, but costs are higher than expected and you accumulate $1500 in expenses. Come up with a fair method to cover the extra $270

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