A motor vehicle has annual depreciation of $2,500; oil changes cost $180, automobile insurance $430 annually, and license plates costs $170 . What is the annual amount of the total fixed operating cost for this vehicle?

$3,100

Explanation:

Given that,

Annual depreciation = $2,500

Oil changes cost = $180  

Automobile insurance = $430 annually

License plates costs = $170

Total Fixed Operating Cost:

= Depreciation + License Plate Cost + Insurance

= $2,500 + $170 + $430

= $3,100

Therefore, the annual amount of the total fixed operating cost for this vehicle is $3,100.

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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