Total costs and unit costs. A student association has hired a musical group for a graduation nteceet ner person $9.60 party. The cost will be a fixed amount of $4,800.

REQUIRED 1. Suppose 500 people attend the party. What will be the total cost of the musical group; the unit cost per person?

2. Suppose 2,000 people attend. What will be the total cost of the musical group; the unit cost per person?

3. For prediction of total costs, should the manager of the party use the unit cost in requirement 1; the unit cost in requirement 2? What is the major lesson of this problem?

LO1