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2. Victor Larson had fixed costs totaling $2,805.60 last year, not
including depreciation. His variable costs totaled $1,870.40. His
3-year-old automobile cost $24,890.00 new and is now worth
$12,290.00. Larson drove his vehicle 16,700 miles last year. What
was his depreciation? What was his cost per mile?

Answer :

The depreciation of the car is $12,600.

The cost of the car per mile is $0.28

What is the depreciation of the car?

Depreciation is the decline in the value of an asset as a result of wear and tear.

Depreciation = cost of the asset - value of the asset now

$24,890 - $12,290 = $12600

What is the cost per mile?

Cost per mile = total cost / total mile

($2,805.60  + $1,870.40) / 16700 = $0.28

To learn more about depreciation, please check: https://brainly.com/question/25552427

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