Question
Neptune Rentals offers a boat rental service. Consider the following costs of the company over the relevant range of 500 to 800 hours of operating
Neptune Rentals offers a boat rental service. Consider the following costs of the company over the relevant range of 500 to 800 hours of operating time for its hours:
Hours of Operating Time
500 600 700 800
Total costs:
Variable costs $ 8,000 $ ? $ ? $ ? Fixed costs $21,000 ? ? ?
Total costs.. $29,000 $ ? $ ? $ ?
Cost per hour: Variable cost $ ? $ ? $ ? $ ? Fixed cost ? ? ? ?
Total cost per hour. $ ? $ ? $ ? $ ?
Compute the total fixed cost when the operating time is 600 hours.
Compute the total cost when the operating time is 700 hours.
Compute the variable cost per unit, if you are making 500 units.
Compute the total cost per unit when the operating time is 600 hours.
Compute the fixed cost per unit when the operating time is 500 hours.
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