Question
The average unit cost at a monthly volume of 9,000 units is $3, and the average unit cost at a monthly volume of 22,500 units
The average unit cost at a monthly volume of 9,000 units is $3, and the average unit cost at a monthly volume of 22,500 units is $2.10.
Required:
A. Develop an equation for the total monthly costs. If necessary, round your answer to two decimal places.
Total monthly costs | = | Fixed costs per month | + | Variable cost |
= | ps | + | ($( ) per unit X number of units) |
B. What are the total monthly costs if 15,000 units are produced?
$
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