Question

Determine the a) total annual cost, and b) cost per mile to the nearest cent.

1. Liz Nolan drove 34,500 miles last year. The total of fixed costs was $9,916 and of variable costs was
$4,897.

Answer 1

total annual cost: 49313

cost per mile: 14 cents

Explanation:

find total annual cost by adding everything up

find cost per mile by doing 4897/34500

cost/ miles

we use variable cost since the only thing that might change each year is the amount of miles they drive

fixed costs are fixed and don't change