In 2017 your parents covered the costs related to the car, but kept a record so

Question

In 2017 your parents covered the costs related to the car, but kept a record so you would be prepared for 2018. In 2017, the two of you combined drove 10,000 miles and accumulated the following costs: 2017 COSTS GAS REPAIRS MISCELLANEOUS TOTAL $660 $450 $120 $1230 Assume that in 2018 costs are again expected to be $1230 with a total of 10,000 miles driven. You expect to drive twice as much as your sibling and you decide a per mile rate is best. To split all costs in 2018, what is the per mile rate you should each pay toward expenses in 2018? 1. It turns out that you drive only 50% more at 6000 miles and your sibling drives 4000. Based on the rate found in the previous question, how much do you each pay in 2018? 2. Is this price in #2 reasonable, should there be a penalty for driving more or less than estimated or is the per-mile rate okay? 3. Now consider that in 2018 you will still drive the same 10,000 miles, but costs of repairs turned out higher than expected and you accumulate $1600 total instead of the $1230 in expenses. Come up with a fair method to cover the extra $370. 4.

Explanation / Answer

Given

Total Expenses for 2018 is 1230 for 10000 miles

then for 1 mile =?

10000 Miles 1230

1 mile ?

1230*1/10000

0.123

Per Mile expenses is 0.123

2.

you 6000 miles

sibling 4000 miles

rate per mile is 0.123

then

6000*0.123=$738

4000*0.123=$492

3.

No there should not be any penality because as it is okay mile per rate the more u use the car the more u pay and the less u use the car the less u pay

4.

The Fair method u can come to cover up the cost of $370 u have been fined by the police for not following the traffic rules and breaking the rules

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