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Question

Consider the following costs of owning and operating a car. A $15,000 Flat 500 Pop financed over 60 months at 8 percent interest means a monthly payment of $304. Insurance costs $100 a month regardless of how much you drive. The car gets 20 miles per gallon and uses regular-grade gasoline that costs $1.95 per gallon. Finally, suppose that wear and tear on the car costs about $0.15 a mile. Which costs are fixed, and which are variable? Fixed costs are the monthly car payment, the costs of insurance, and costs associated with wear and tear. variable costs are the cost of gasoline. Fixed costs is the monthly car payment; variable costs are the cost of insurance. the cost of gasoline, and costs associated with wear and tear. Fixed costs is the monthly car payment; and the cost insurance; variable costs are the cost of gasoline, and costs associated with wear and tear. Fixed costs are the monthly car payment, the costs of insurance, variable costs are the cost of gasoline; variable costs are the costs associated with wear and tear. (Round your response to two decimal places.)