Step 1:
Find the depreciation
[tex]\begin{gathered} \text{Depreciation = 20\% of \$20,000} \\ \text{Depreciation = }\frac{20}{100}\text{ }\times\text{ \$20000} \\ \text{Depreciation = \$4000} \end{gathered}[/tex]
Step 2:
Total cost = $425 + $400 + $110 + $100 + $4000
Total cost = $5035
Final answer
[tex]\begin{gathered} \text{Cost per mile = }\frac{5035}{10000} \\ \text{Cost per mile = \$0.5035} \\ \text{Cost per mile = \$0.50} \end{gathered}[/tex]
Option D $0.50 per mile
