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Based on the data provided here, calculate the items requested: Annual depreciation Current years loan interest Insurance Av

mework Saved Use the following data: Down payment (to finance vehicle) Monthly loan payment Length of loan Value of vehicle a

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Answer #1

Given,

Annual depreciation = $2,500

Annual mileage =13,200

Current year’s loan interest = $650

Miles per gallon = 24

Insurance = $680

License and registration fees = $65

Average gasoline price = $3.50 per gallon

Oil changes/repairs = $370

Parking/tolls = $420

Solution :-

Total Variable (ost & Total Gasoline Cost $1925 (Note 1) Parking I tolls $420 Oil Changes/repairs $370 Total Variable cost $Total fixed cost $2500 $650 Annual depreciation Current years Loan Interest Insurance License and registration fees Total Fi

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