A. The average cost per unit was $234 at a volume of 1,200 units and $205 at a volume of 1,400 units. The profit was $24,000 at the lower volume. Estimate the variable cost per unit.
B. Sparkle Car Wash Supplier sells a hose washer for $0.25 that it buys from the manufacturer for $0.12. Variable selling costs are $0.02 per hose washer. Breakeven is currently at a sales volume of $10,600 per month. What are the monthly fixed costs associated with the washer?
C. Monthly fixed costs are $24,000 when volume is at or below 200 units and $36,000 when monthly volume is above 200 units. The variable cost per unit is $200 and the selling price is $300 per unit. What is the breakeven quantity?

  • CreatedJanuary 26, 2015
  • Files Included
Post your question