Question: Computing Average Unit Costs Assume the total monthly operating costs of a McDonald s restaurant are: $ 4 0 , 0 0 0 + $

Computing Average Unit Costs
Assume the total monthly operating costs of a McDonalds restaurant are:
$40,000+ $0.75X
where X = Number of orders
(a) Determine the average cost per order at each of the following monthly volumes: 1,000; 10,000; 50,000; 100,000.
Round answers to two decimal places.
VolumeAverage Unit Cost1,000Answer 1
10,000Answer 2
50,000Answer 3
100,000Answer 4
(b) Determine the monthly volume at which the average cost per order is $2.35.
Answer 5orders

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