The City of Sinasonville operated a motor pool fund as an internal service fund. A loan of $500,000 was made from an enterprise fund, to be repaid over 10 years with no interest. Capital assets were purchased as follows: land, $200,000; buildings (40 year life), $800,000; equipment (10 year life), $300,000; automobiles (4 year life), $1,200,000. In addition, fuel costs were expected to be $100,000 and salaries were expected to be $200,000. A budget is prepared to breakeven, using full accrual accounting, plus pay back one year's principal on the loan. It is anticipated that cars will be driven 2,000,000 miles. The cost per mile would be:
Please show all work and calculations!