Question

Find the cost per mile for the given data:

Bayo
Fixed Expense: $1,820.70
Running Expense for 15 miles: $996.45
Running Expense for 16 miles: $1,465.60
Total Cost: $1,623
Total Cost: $1,118
Total Cost: $2,255
Total Miles: 7,560
Total Miles: 11,700
A) $0.13 per mile
B) $0.18 per mile
C) $0.12 per mile
D) $0.22 per mile

Answer 1

The cost per mile is not applicable as both calculations resulted in a loss.

Step-by-step explanation:

To find the cost per mile, we need to calculate the variable expense per mile for both 15 miles and 16 miles.

To calculate the variable expense per mile, we subtract the fixed expense from the total cost and then divide by the total miles.

For 15 miles: $996.45 - $1,820.70 = -$824.25; $824.25 ÷ 15 = -$54.95 per mile (negative sign indicates a loss).

For 16 miles: $1,465.60 - $1,820.70 = -$355.10; $355.10 ÷ 16 = -$22.19 per mile (negative sign indicates a loss).

Since both calculated values are negative, it implies a loss, and therefore the cost per mile is not applicable for this data. The correct answer is none of the given options (A, B, C, or D).