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 = $2,125,000 + $375X, where X = Number of Heart Stents. Last year, Alisha produced 75,000 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.