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Micheel is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of

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Micheel is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of aperations: Rent $9,200. Depreciation on equipment $7,000. Wages $16,312, Motor oil $2 per quart: He estimates that each oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast 'n Clean Corporation a franchise fee of $1.10 per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oll changes as follows: Michael anticipates that he can provide the oil change service with a hafer at $28.92 each. Michael is considering openire a Fast 'n Clean Car Service Center. He estimates that the following costs wili be incurred during his first year of operations: Rent $9,200. Depreciation on equipment $7,000. Wages $16,312. Motor oil $2 per quart. He estimates that each oll change will require 5 quarts of oil. Oil hiters will cost $3.00 each. He must also pay The Fast 'n Ciean Corporation a franchise fee of $1.10 per ol change since he will operate the business as a franchise. In addition, wtality costs are expected vary with the quantity of oll changes as follows: Michacl anticipates that he can provide the oil change service with a fiter at 528.92 each. (a) Your answer has been saved. See vcore details after the due date. Using the high-fow method, determine variabie costs per unit and total finced costs, (Round varlable cost to 2 dedimal pleces, es. 52.75.) Variabie cost $ Fixed cost Determine the break-even saies quantity of oil changes and sabes dotlarsi (Round Contributicn morgh ratlo to 2 dedinat pleces, eg. 57.200 k Round final answers to 0 declmal ploces, es, 5720 . e Textbook and Media Attempts: of 1 used

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