Question: Anna Wright is considering opening a Kwik Oil Change Center. She estimates the following monthly costs: rent $6,000; depreciation on equipment $7,000; and wages $16,400.

Anna Wright is considering opening a Kwik Oil Change Center. She estimates the following monthly costs: rent $6,000; depreciation on equipment $7,000; and wages $16,400. Additionally, each oil change will include five quarts of oil at $1.80 per quart and one oil filter that will cost $3.00. She must also pay The Kwik Corporation a franchise fee of $1.40 per oil change. In addition, she has collected the following data from the company regarding utility costs. The total utility cost is based on the number of monthly oil changes.

Month	Number of Oil Changes	Utility Cost
April	4,000	$6,000
May	6,000	$7,300
June	9,000	$9,600
July	12,000	$12,600
August	19,000	$15,000

What is the variable cost per oil change?

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