Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 total monthly costs. If required, round your answer to two decimal places.
Total monthly costs | = | Fixed costs per month | + | Variable cost |
= | $( ) | + | ($( ) per unit X number of units) |
B. What are the total monthly costs if 15,000 units are produced? $( )
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started