Rocky River Fast Lube does oil changes on vehicles in 15 minutes or less. The variable cost associated with each oil change is $12 (oil, filter, and 15 minutes of employee time}. The xed costs of running the shop are $3,000 each month (store manager salary, depreciation on shop and equipment, insurance, and property taxes). The shop has the capacity to perform 4,000 oil changes each month. Read the uirements. Requirement a. Total cost of performing 1,000 oil changes in May. Determine the formula, then calculate the current total product cost of performing 1,000 oil changes in May. I: +{ |:| X I }= Total product cost l +{ x i: Requirements Calculate the following: a. Total cost of performing 1,000 oil changes in May in. Average cost of performing each oil change in May c. Marginal cost of performing an oil change in May :1. if the company could reach full capacity one month, what would the total cost be? e. At full capacity, what would the average cost be of each oil change\"? 1'. Could Rocky River Fast Lube offer more competitive pricing if it operated closerto full capacity? Explain. Rocky River Fast Lube does oil changes on vehicles in 15 minutes or less. The variable cost associated with each oil change is $12 (oil, filter, and 15 minutes of employee time). The xed costs of running the shop are $8,000 each month (store manager salary, depreciation on shop and equipment, insurance, and property taxes). The shop has the capacity to perform 4,000 oil changes each month. Read the r_equirements. Requirement a. Total cost of pen'orming 1,000 oil changes in May. Determine the formula, then calculate the current total product cost of performing 1,000 oil changes in May. I 1| +( I x I )= Total product cost Average cost per unit Average employee time Number of units Total fixed cost Total variable costs Variable cost per unit