Question
The average cost per unit was $232 at a volume of 900 units and $202 at a volume of 1,100 units. The earnings were $22,300
The average cost per unit was $232 at a volume of 900 units and $202 at a volume of 1,100 units. The earnings were $22,300 at the lower volume. Estimate the variable cost per unit.
Variable cost per unit $ _____
Pharoah Car Wash Supplier sells a hose washer for $0.27 that it buys from the manufacturer for $0.11. Variable selling costs are $0.01 per hose washer. Breakeven is currently at a sales volume of $10,341 per month. What are the monthly fixed costs associated with the washer?
Fixed costs $_____
Monthly fixed costs are $27,500 when volume is at or below 200 units and $37,400 when monthly volume is above 200 units. The variable cost per unit is $190, and the selling price is $300 per unit. What is the breakeven quantity?
Breakeven quantity _____ units
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