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

Respuesta :

Answer:

$2,400

Explanation:

The total fixed operating cost is calculated as;

= Depreciation charges + Automobile insurance + License plates costs

= $1,600 + $700 + $100

= $2,400

Therefore, the total fixed operating for the vehicle is $2,400

• Note that oil changes cost is not part of total operating fixed costs hence not included.