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Computing Average Unit Costs Assume the total monthly operating costs of a McDonald's restaurant are: $40,000 + $0.75X X = Number of salad orders Required

Computing Average Unit Costs

Assume the total monthly operating costs of a McDonald's restaurant are:

$40,000 + $0.75X

X = Number of salad orders

Required

a. Determine the average cost per salad at each of the following monthly volumes: 1,000; 10,000; 50,000; 100,000.

b. Determine the monthly volume at which the average cost per serving is $2.35.

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