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Suppose that a certain car has the following average operating and ownership costs.

Operating
$0.28
Ownership
$0.74
If you drive 30,000 miles per year, what is the total annual expense for this car?
a. $30,600
b. $31,500
c. $30,300
d. $31,200

User Acmoune
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1 Answer

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Final answer:

The total annual expense for operating and owning a car that costs $0.28 per mile for operating and $0.74 per mile for ownership, driven 30,000 miles per year, is $30,600 (option a).

Step-by-step explanation:

To calculate the total annual expense for operating and owning the car, we must consider both the operating and ownership costs per mile and then multiply each by the total number of miles driven annually. The student drives 30,000 miles per year.


The operating cost is $0.28 per mile, so the total operating cost for the year is:


Operating cost = 30,000 miles × $0.28/mile = $8,400


The ownership cost is $0.74 per mile, so the total ownership cost for the year is:


Ownership cost = 30,000 miles × $0.74/mile = $22,200


Adding these together gives the total annual expense:


Total annual expense = Operating cost + Ownership cost = $8,400 + $22,200 = $30,600


Thus, the correct answer is option (a) $30,600.

User RoughPlace
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