A motor vehicle has annual depreciation of $1,600; oil changes cost $140,automobile insurance $700 annually,and license plates costs $100.What is the annual amount of the total fixed operating cost for this vehicle?

Question

Quizplus · Accepted Answer

Fixed operating costs include annual depreciation, insurance, and license plates costs, but not oil changes since they can vary based on usage. Adding these up gives $1,600 (depreciation) + $700 (insurance) + $100 (license plates) = $2,400.

A Motor Vehicle Has Annual Depreciation of $1,600; Oil Changes