Question

SE See 50.0826 0.0236 0.0188 This exercise refers to Example 8-2 "The Cost of Driving a Car" Based on the information given in this example, the table displayed to your right describes the costs related to owning and driving a new 2007 Cobalt LTZ automobile. Note that the per kilometre costs are assumed to stay the same at different kilometre levels a. Suppose that Mini Driver, an owner of a Cobalt LTZ, drives 15 000 kilometres in 2007. The average variable cost (AVC) related to driving this car equalss per km. (Round your response to 3 decimal places.) b. Suppose that Mini Driver, an owner of a Cobalt LTZ, drives 15 000 kilometres in 2007. Mini's average fixed cost (AFC) of driving this car equals per km. (Round your response to 3 decimal places.) c. Suppose that Mini Driver, an owner of a Cobalt LTZ drives 15 000 kilometers in 2007. Mini's average total cost (ATC) of driving this car equals per km. (Round your response to 3 decimal places.) Costs Per Kilometre Fuel Maintenance Tires Annual Costs Insurance License and registration Financing charges Depreciation see 51731.00 118.00 975.00 4256.00 see ses SC Enter your answer in each of the answer boxes peruere

Answer 1

Annual Costs (as it's independent of km travelled) 1731 + 118 +975 +2256 $7,080 に TVC (per km) per 0.0836 +0.023€ +0.0188 . 2 0.126 0.126 X 15000 a) [:Ave: Tue [: Afc= TFC - $0.126 126 per km $0.472 per km : AVC AFC 7080 15000 c) ... ATCS ARCTAVE 2.0.4727 00124 3.$9.598 peskm. Camlin