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The McDonald's Corporation operates fast-food restaurants worldwide. Last month, one of its outlets produced 50,000 burgers at a total cost of $30,000. When production increased
The McDonald's Corporation operates fast-food restaurants worldwide. Last month, one of its outlets produced 50,000 burgers at a total cost of $30,000. When production increased to 60,000 burgers, the total cost rose to $36,000.
i) Calculate the fixed cost per unit.
ii) Determine the variable cost per unit.
iii) If the company expects to produce 70,000 burgers next month, what would be the expected total cost? (15 marks)
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