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Larry estimates that the costs of insurance, license, and depreciation to operate his car total $435 per month and that the gas, oil, and maintenance costs are 34 cents per mile. Larry also estimates that, on average, he drives his car 2,000 miles per month. Required: a. How much cost would Larry expect to incur during April if he drove the car 1,578 miles

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sebastiansierraocm

Answer:

$971.52

Explanation:

Larry's fixed costs for using his car are $435 per month. He has to pay this even if he drove zero miles during the month.

The variable cost is 34 cents per mile, and he drove a total of 1,578 miles, therefore:

34 x 1,578 =  536,52 dollars.

As a result, his total costs are:

435 in fixed costs + 536,52 in variable costs = 971.52

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