Question
The following are three independent situations. The average cost per unit was $234 at a volume of 1,100 units and $204 at a volume of
The following are three independent situations.
The average cost per unit was $234 at a volume of 1,100 units and $204 at a volume of 1,300 units. The earnings were $22,100 at the lower volume. Estimate the variable cost per unit.
Variable cost per unit | $ |
Sarasota Car Wash Supplier sells a hose washer for $0.23 that it buys from the manufacturer for $0.12. Variable selling costs are $0.01 per hose washer. Breakeven is currently at a sales volume of $8,786 per month. What are the monthly fixed costs associated with the washer?
Fixed costs | $ |
Monthly fixed costs are $20,000 when volume is at or below 200 units and $28,800 when monthly volume is above 200 units. The variable cost per unit is $210, and the selling price is $290 per unit. What is the breakeven quantity?
Breakeven quantity | units |
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