Kristen Lu purchased a used automoblle for $12,300 at the beginning of last year and incurred the following operating costs: The varlable operating cost consists of gasoline, oll, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreclation is $2,460. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 12,000 miles last year. Compute the average cost per mile of owning and operating the car. Note: Round your answers to 2 decimal places. 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip tor two weeks during spring break. What costs above are relevant in this decision? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Variabie operating costs Depreciation Automobile tax2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross- country trip for two weeks. during spring break. What costs above are relevant in this decision? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. 7 Variable operating costs Depreciation Automoblie tax License costs insurance costs.

1. Kristen Lu purchased a used automoblle for $12,300 at the beginning of last year and incurred the
following operating costs: The varlable operating cost consists of gasoline, oll, tires, maintenance,
and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value
in five years, so the annual straight-line depreclation is $2,460. The car is kept in a garage for a
monthly fee. Required: 1. Kristen drove the car 12,000 miles last year. Compute the average cost
per mile of owning and operating the car. Note: Round your answers to 2 decimal places. 2.
Kristen is unsure about whether she should use her own car or rent a car to go on an extended
cross-country trip tor two weeks during spring break. What costs above are relevant in this
decision? Note: You may select more than one answer. Single click the box with the question
mark to produce a check mark for a correct answer and double click the box with the question
mark to empty the box for a wrong answer. Any boxes left with a question mark will be
automatically graded as incorrect. Variabie operating costs Depreciation Automobile tax2. Kristen
is unsure about whether she should use her own car or rent a car to go on an extended cross-
country trip for two weeks. during spring break. What costs above are relevant in this decision?
Note: You may select more than one answer. Single click the box with the question mark to
produce a check mark for a correct answer and double click the box with the question mark to
empty the box for a wrong answer. Any boxes left with a question mark will be automatically
graded as incorrect. 7 Variable operating costs Depreciation Automoblie tax License costs
insurance costs