1. Buds Automotive usually purchases the vehicles for his used car lot at an average cost of $3,250 per vehicle. It costs him approximately $2,250 to get each of these vehicles ready for resale and this cost includes cleaning, preparations and any maintenance.

Bud sells cars at an average price of $8,950. Bud leases the car lot for $1000 a month and spends $1200 for newspaper advertising per month. His sales people are paid a salary of a total of $10000 per month. Last month 30 cars were sold.

What is the per unit COGS for Bud?

What is the total COGS for Bud?

What is his monthly fixed cost?