Computing Average Unit Costs (LO2)

The total monthly operating costs of Chili to go are:

$10,000 + $0.40x

Where

X = servings of chili

1. Determine the average cost per serving at each of the following monthly volumes: 100; 1,000; 5,000; and 10,000
2. Determine the monthly volume at which the average cost per serving is $0.60.