1. Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula: Maintenance Cost = $1,850,000 + $250X, where X = Number of Heart Stents. Last year, Alisha produced 52,000 stents. Actual maintenance costs for the year were as expected.

   Required:

   If required, round your answers to the nearest cent.

   1. What is the total maintenance cost incurred by Alisha last year? $

   2. What is the total fixed maintenance cost incurred by Alisha last year? $

   3. What is the total variable maintenance cost incurred by Alisha last year? $

   4. What is the maintenance cost per unit produced? $per unit

   5. What is the fixed maintenance cost per unit? $per unit

   6. What is the variable maintenance cost per unit? $per unit

   7. Alisha management could improve its cost function to better understand past maintenance costs and predict future maintenance costs by: Identifying Additional Drivers of Maintenance Cost