Question

Omar purchased a used vehicle for $6,500 one year ago. He drove 12,000 miles during the year and kept a record of all his expenses. The variable costs totaled $1,972.50, and the fixed costs totaled $2,476.25. What was the cost per mile for Omar to operate his vehicle last year?

1 point
$0.16
$0.20
$0.37
$2.70

Answer 1

Answer: $0.16

Explanation:

Hi, to answer this question we simply have to divide the variable cost ($1,972.50) by the number of miles driven (the variable; 12,000 miles)

Mathematically speaking:

1,972.50 /12000 = 0.16

The cost per mile for Omar to operate his vehicle last year was $0.16

Feel free to ask for more if needed or if you did not understand something.