Homework exercise

Assume a local Subway reported the following results for April and May

April May Increase Type of Cost

Unit Sales $2,1002,70028\mathrm{.}6\%$

Cost of Food Sold $$1,575$ $$2,02528\mathrm{.}6\%$ Variable

Wages and Salaries $1,5251,6759\mathrm{.}8\%$ Mixed

Rent $1,5001,5000\mathrm{.}0\%$ Fixed

Depreciation $2002000\mathrm{.}0\%$ Fixed

Utilities $7107708\mathrm{.}5\%$ Mixed

Supplies $22525513\mathrm{.}3\%$ Mixed

Miscellaneous $11313115\mathrm{.}9\%$ Mixed

Total $$5,848$ $$6,556$

a$.$ Identify each cost as being fixed, variable or mixed.

b$.$ Determine the equation for total operating costs $($Fixed $+$ Unit Variable Cost $*$ # of sandwiches$)$

c$.$ Predict the total operating costs for $10002000$ sandwiches

d$.$ Determine the average costs for $10002000$ sandwiches

Note: I$\text{'}$m having trouble dtermining how to account for mixed costs when factoring in unit variable cost. I got a unit variable cost of $$1\mathrm{.}18,$ but when double checking my work, that gave me a discrepancy between total operating costs based on that unit variable cost and the given numbers.