To calculate the unit cost of the MP3 players that he sells at his mall kiosk, Joel
Question:
To calculate the unit cost of the MP3 players that he sells at his mall kiosk, Joel Lawson added up all his costs and divided by the number of units he sold during the year. He then used this unit cost to estimate total costs for the coming year.
Required
Explain to Joel why this unit cost is not useful in predicting total costs for the coming year.
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Undoubtedly some of your costs are fixed and will no...View the full answer
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