Question

Jane Spring maintained this record of vehicle expenses for last year: gas, $845.96; oil, lube, miscellaneous, $68.85; insurance, $418.50; and license, $35.00. She drove 8,280 miles last year. Her 2-year-old vehicle cost $19,860.00 new and is now worth $11,860.00. a. What was her depreciation? b. What were her total variable costs?

asap pls I need it

Answer 1

Step-by-step explanation:

a. What was her depreciation?

Since her 2-year-old vehicle cost $19,860.00 new and is now worth $11,860.00. The depreciation will be:

= $19860 - $11860

Accumulated depreciation = $8000

The depreciation for each year will be,: = $8000/2 = $4000

b. What were her total variable costs?

This will be the addition of the gas, and the oil and miscellaneous which will be:

= $845.96 + $68.85

= $914.81

We should note that the insurance and license are fixed cost.