Scenario #$1(5\mathrm{.}14)$

Kim and Pat underwrite insurance. Each underwrites $50$ accounts per month. Each account takes four hours to underwrite. The value of their time is $$40$ per hour. Monthly costs for each are $$1,500$ for an office, $$2,000$ for a receptionist, and $$2,400$ for a secretary$.$

Topic Question

Calculate the average and incremental cost per case for Kim and Pat.

Volume $5051$

Kim$$s Time $$8000$

Rent $$1500$

Receptionist $$2000$

Secretary $$2400$

Total Cost $$13900$

Average Cost $$278$

Incremental Cost