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South River Fast Lube does oil changes on vehicles in 1 5 minutes or less. The variable cost associated with each oil change is $

South River Fast Lube does oil changes on vehicles in 15 minutes or less. The variable cost associated with each oil change is $7.(oil, filter, and 15 minutes of employee time). The fixed costs of running the shop
are $17,000 each month (store manager salary, depreciation on shop and equipment, insurance, and property taxes). The shop has the capacity to perform 2,500 oil changes each month.
Read the requirements.
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.
Requirement b. Average cost of performing each oil change in May.
Determine the formula, then calculate the current average cost per oil change.
=
Average cost per oil change
=
Requirement c. Marginal cost of performing an oil change in May.
The marginal cost of performing an oil change in May is
Requirement d. If the company could reach full capacity one month, what would the total cost be?
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