Rocky River Fast Lube does oil changes on vehicles in 15 minutes or less. The variable cost

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Rocky River Fast Lube does oil changes on vehicles in 15 minutes or less. The variable cost associated with each oil change is $12 (oil, filter, and 15 minutes of employee time). The fixed costs of running the shop are $8,000 each month (store manager salary, depreciation on shop and equipment, insurance, and property taxes). The shop has the capacity to perform 4,000 oil changes each month. Calculate the following:

a. Total cost of performing 1,000 oil changes in May
b. Average cost of performing each oil change in May
c. Marginal cost of performing an oil change in May
d. If the company could reach full capacity one month, what would the total cost be?
e. At full capacity, what would the average cost be of each oil change?
f. Could Rocky River Fast Lube offer more competitive pricing if it operated closer to full capacity? Explain.

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