Answer:
The total fixed operating cost is $2,600
Explanation:
The total fixed operating cost for the vehicle is computed as:
Total fixed operating cost = Depreciation charges + Automobile insurance + License plates costs
where
Depreciation charges is $2,000
Automobile insurance is $500
License plates costs is $100
Putting the values in the formula:
= $2,000 + $500 + $100
= $2,600
Note: Oil changes cost is not fixed so will not be included in the the total fixed operating cost.
