Question: part A, then part B needs break even in units and break even in $, then part C needs total oil changes required Mark is
part A, then part B needs break even in units and break even in $, then part C needs total oil changes requiredMark is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations: Rent $9,200, Depreciation on equipment $7,000, Wages $16,556, Motor oil $2 per quart. He estimates that each oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast 'n Clean Corporation a franchise fee of $1.10 per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil changes as follows: Quantity of Oil Changes 5,400 7,400 10,400 13,400 (a) 16,800 Mark anticipates that he can provide the oil change service with a filter at $32.17 each. Variable cost Utility Costs Fixed cost $11,626 $14.300 $16,600 Using the high-low method, determine variable costs per unit and total fixed costs. (Round variable cost to 2 decimal places, e.g. 52.75.) $ $19,600 $22,000 per unit
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