Answer:
Annual cost per mile of operating a car=$0.409 per mile
Explanation:
Step 1: Calculate the total cost of gas and other associated cost
Total cost of gas=price per gallon×number of gallons consumed
where;
price per gallon=$ 2.79
number of gallons consumed=24
replacing;
Total cost of gas=(24×2.79)=$66.96
Additional costs=Annual depreciation+interest+insurance+license+
repairs/oil+parking
where;
Annual depreciation=$2,500
interest=$650
insurance=$680
license=$65
repairs/oil=$370
parking=$498
replacing;
Additional costs=(2,500+650+680+65+370+498)=$4,763
Total costs=total gas cost+additional cost=(66.96+4,763)=4,829.96
Total annual operating cost=$4,829.96
Annual cost per mile=Total annual operating costs/number of miles driven
Annual cost per mile=4,829.96/11,800
Annual cost per mile=$0.409 per mile
