Warm Up 11/15 Round to the nearest cent $67 + $33 + $24 + $136= (150 + $140) + ($35 + $75) = ($113 + $250 + $300 +$200) ÷4000 = 1.25 * $79.90 = ($219 + $385 + $172 + $1,424) ÷ 8,000= $ 260 $ 400 $ 0.22 $ 99.88 $ 0.28

What do you think are some additional expenses that you will have in operating and maintaining your vehicle?

Unfortunately, the cost of the vehicle is no the only expense when owning a car. The 3 primary costs of operating and maintaining are: Variable costs: such as gasoline, tires, oil change. These costs increase the more that you drive the vehicle. Fixed costs: Vehicle insurance, and Registration fees. These fees remain the same regardless of how much you drive. Depreciation: Is the decrease in the value of your vehicle because of its age and condition.

How do you estimate the cost of operating and Maintaining a Vehicle? The cost per miles is calculated by taking the costs of operating and maintaining the vehicle and dividing it by the total number of miles that were drive during the year.

Edmunds.com/tco.html Edmunds.com is a great resource to calculate the estimated cost to Operate and Maintain Vehicle. They call it the “True Cost to Own” or tco http://www.edmunds.c om/tco.html

Ana Jones purchased a used vehicle for $4,000 one year ago Ana Jones purchased a used vehicle for $4,000 one year ago. She drove 9,000 miles during the year and kept record of all her expenses. She estimates the vehicles present value at $3,200. What was her cost per mile for Ana to operate her vehicle? Variable Costs Fixed Costs Gasoline $745.24 Insurance $385.40 Oil Changes $71.85 Registration $76.25 Maintenance $114.36 Depreciation $800.00 New tire $41.75 Total Variable $973.20 Total Fixed $1,261.65

Variable Costs Fixed Costs Gasoline $745.24 Insurance $385.40 Oil Changes $71.85 Registration $76.25 Maintenance $114.36 Depreciation $800.00 New tire $41.75 Total Variable $973.20 Total Fixed $1,261.65 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑚𝑖𝑙𝑒= $973.20+1,261.65 9,000 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑚𝑖𝑙𝑒=$0.25

Tom Larson had fixed costs totaling $2,805. 60 last year Tom Larson had fixed costs totaling $2,805.60 last year. His variable costs totaled $1,870.40. Larson drove his vehicle 16,700 miles last year. What was his cost per mile? 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑚𝑖𝑙𝑒= $2805.60+$1,870.40 16,700 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑚𝑖𝑙𝑒= $4,676.00 16,700 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑚𝑖𝑙𝑒=$0.28

Jamila Simmons drove 9,910 miles last year Jamila Simmons drove 9,910 miles last year. Her fixed costs totaled $1,754.07 last year. Her variable costs totaled $1,149.97.What was her cost per mile? 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑚𝑖𝑙𝑒= $2,754.07+$1,149.97 9,910 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑚𝑖𝑙𝑒= $3,904.04 9,910 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑚𝑖𝑙𝑒=$0.39

Jim Spring maintained this record of vehicle expenses for last year: gas, $845.96; oil, lube, miscellaneous, $168.85; new tires $168.51; insurance, $418.50; depreciation , $900.00; registration $213; and license, $35. He drove 8,280 miles last year. a. What were his total variable costs? b. What were his total fixed costs? c. What were his total costs? d. What was his cost per mile? $1,183.32 $1,566.50 $2,749.82 $0.33

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