Question: Problem 3-3 The average unit cost at a monthly volume of 9,000 units is $3, and the average unit cost at a monthly volume of

Problem 3-3

The average unit cost at a monthly volume of 9,000 units is $3, and the average unit cost at a monthly volume of 22,500 units is $2.10.

Required:

A. Develop an equation for total monthly costs. If required, round your answer to two decimal places.

Total monthly costs = Fixed costs per month + Variable cost
= $ + ($ per unit X number of units)

B. What are the total monthly costs if 15,000 units are produced? $

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