All categories

2 years ago

Kristen Lu purchased a used automobile for 8,000 at the beginning of last year and incurred the following operating costs:

Business

1 answer:

TEA [102]2 years ago

8 0

Depreciation = 8000/5 = 1600

Insurance = 1200

Garage Rent = 360

Automobile tax and license = 40

Variable operating cost = 0.14 per mile

Variable operating costs include gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at its current usage rate, the car will have zero resale value in five years, so the annual straight-line depreciation is $1,600. Cars are garaged for a monthly fee.

Requirement:

Kristen drove the car 10,000 miles last year. Compute the average cost per mile of owning and operating the car.

(Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Fixed cost per mile (3,200 ÷ 10,000 miles) = 0.32

Variable operating cost per mile = 0.14

Average cost per mile = 0.46 (0.32 + 0.14)

Learn more about average cost:

brainly.com/question/13682513

#SPJ4

You might be interested in

What are two main reasons for having a savings account

Sonbull [250]

Answer:

to start building wealth

and for easy accessibility (emergency funds are there)

5 0

3 years ago

Read 2 more answers

The case study method is most effective in:A. Proving out theoryB. Narrowing the gap between theory and practiceC. Simulating re

tino4ka555 [31]

Answer:

Letter B is correct. <u>Narrowing the gap between theory and practice.</u>

Explanation:

Case study is an investigative methodological approach applied to simple or applied social sciences. It is carried out through the use of different qualitative methods for the collection of data and information relevant to the foundation of the research. The qualitative method is the most appropriate in a case study, as it occurs through subjective and not substantially statistical means of in-depth analysis of relevant factors in an event, an individual, an institution, a group and others.

Case studies can be classified as:

exploratory,
descriptive, or
explanatory.

So it is correct to state that the purpose of the case study is to reduce the difference between theory and practice. Because the analysis of the information collected and the variables and patterns found will provide subsidies for the discussion and better understanding and reasoning between what happens between the theory and the practice analyzed in the case study.

3 0

3 years ago

Relevant costs for target costing include:

Firdavs [7]

Answer:

Correct answer is D. All future costs, both variable and fixed

Explanation:

In target costing, all future costs both variable and fixed costs are relevant. This is for us to clearly determine the desired profit that the company wants to attain. The process of costing is to determine all future costs that the company will possibly incur in the production and add it to the desired profit margin to know the unit sales price of the product.

5 0

3 years ago

As lynn is working on writing the text that will be incorporated into a new magazine ad for her company’s line of handbags, she

bulgar [2K]

As Lynn is working on writing the text that will be incorporated into a new magazine ad for her company’s line of handbags, she is engaging in the encoding stage of the communication process.

<h3><u>What is encoding?</u></h3>

Humans primarily communicate through encoding and decoding messages. The individual who creates and transmits the message is known as the encoder.
The encoder must ascertain how the audience will interpret the message and make necessary changes to ensure that the audience interprets the message as intended.
Encoding is the process of converting ideas into language. The message is transmitted by the encoder using a "medium" such a phone call, email, text message, in-person meeting, or other communication method.

Different signals require different levels of conscious thought when they are encoded. The encoder should also care for any "noise"—such as other messages, distractions, or influences—that could obstruct their message.

Know more about encoding with the help of the given link:

brainly.com/question/19586679

#SPJ4

7 0

1 year ago

Burruss Company developed a static budget at the beginning of the company's period bases on an expected volume of 8,000 units:Re

choli [55]

Answer:

Total fixed cost $16,000

unit fixed cost for 10,000 units $1.60

Explanation:

the budget was made for 8,000 units

so the 2.00 dollars for fixed cost will be based on a production for 8,000 units

total fixed cost: 8,000 budgeted units x $2 per unit = 16,000

This is the level of fixed cost.

<u>For 10,000 units the total fixed cost should be the same.</u>

and for units it will be total cost / units of production

16,000 / 10,000 = 1.6

On unit-level it will drop by 40 cent to $1.60 from $2.00

7 0

3 years ago