Answer:
To calculate the annual variable and fixed costs of a vehicle, as well as the operating cost per mile, you'll need some specific information about the vehicle and its expenses. The costs can vary depending on factors such as fuel efficiency, maintenance, insurance, and depreciation.
Here's a general formula to calculate the annual variable and fixed costs and operating cost per mile:
(a) Annual Fixed Costs:
- These are costs that do not vary with the number of miles driven in a year. They typically include items like insurance, registration, and depreciation.
(b) Annual Variable Costs:
- These are costs that depend on the number of miles driven in a year. They typically include fuel, maintenance, and tires.
(c) Operating Cost Per Mile:
- This is calculated by adding the annual fixed costs to the annual variable costs and dividing by the number of miles driven in a year.
The specific values for these costs will vary depending on your vehicle and your circumstances. To calculate them, you need to gather the following information:
1. Annual Fixed Costs:
- Insurance Cost
- Registration Cost
- Depreciation (the estimated decrease in the vehicle's value over a year)
2. Annual Variable Costs:
- Fuel Cost
- Maintenance Cost
- Tire Replacement Cost
3. Number of Miles Driven in a Year
Once you have this information, you can plug it into the formula above to calculate the annual fixed and variable costs and the operating cost per mile.
For example, if you have the following information:
- Insurance Cost: $1,200 per year
- Registration Cost: $100 per year
- Depreciation: $3,000 per year
- Fuel Cost: $2,000 per year
- Maintenance Cost: $500 per year
- Tire Replacement Cost: $300 per year
- Number of Miles Driven in a Year: 12,000 miles
(a) Annual Fixed Costs:
= Insurance Cost + Registration Cost + Depreciation
= $1,200 + $100 + $3,000
= $4,300 per year
(b) Annual Variable Costs:
= Fuel Cost + Maintenance Cost + Tire Replacement Cost
= $2,000 + $500 + $300
= $2,800 per year
(c) Operating Cost Per Mile:
= (Annual Fixed Costs + Annual Variable Costs) / Number of Miles Driven in a Year
= ($4,300 + $2,800) / 12,000 miles
= $7,100 / 12,000 miles
≈ $0.59 per mile
So, the annual fixed costs are approximately $4,300, the annual variable costs are approximately $2,800, and the operating cost per mile is approximately $0.59 per mile.
Step-by-step explanation: