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tatyana61 [14]
2 years ago
15

Terry estimates that the costs of insurance, license, and depreciation to operate his car total $460 per month and that the gas,

oil, and maintenance costs are 34 cents per mile. Terry also estimates that, on average, he drives his car 2,000 miles per month. Required: a. How much cost would Terry expect to incur during July if he drove the car 1,534 miles
Business
1 answer:
puteri [66]2 years ago
7 0

Answer:

Total cost= $984.62

Explanation:

Giving the following information:

Fixed cost= $460

Unitary variable cost= $0.34 per mile

Miles driven= 1,534

<u>First, we need to establish the total cost formula:</u>

<u></u>

Total cost= fixed cost + unitary variable cost*number of units

Total cost= 460 + 0.34*x

x= number of miles

<u>Now, the total cost for the month:</u>

Total cost= 460 + 0.34*1,543

Total cost= $984.62

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