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William is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year
William is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations: Rent $9,200, Depreciation on equipment $7,000, Wages $16,400, Motor oil $2 per quart. He estimates that each oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast 'n Clean Corporation a franchise fee of $1.10 per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil changes as follows: Quantity of Oil Changes Utility Costs 4,500 $8,050 6,500 $9,800 9,500 $12,100 12.500 $15,100 15,000 $17,500 William anticipates that he can provide the oil change service with a filter at $30.00 each x Your answer is incorrect. Using the high-low method, determine variable costs per unit and total fixed costs. (Round variable cost to 2 decimal places, eg Question 2 of 5 < > 0.67/21 Using the high-low method, determine variable costs per unit and total fixed costs. (Round variable cost to 2 decimal places, eg 52.75) Variable cost $ 0.90 per unit Fixed cost $ 34850 eTextbook and Media x Your answer is incorrect. Determine the break-even sales quantity of oil changes and sales dollars. (Round Contribution margin ratio to 2 decimal places, eg 57.20%. Round final answers to O decimal places, eg. 5720) Break-even oil changes in units 3405 Break-even sales in dollars $ 07125
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