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2-6 Computing Average Unit Costs The tocal monthly operating costs of El Rancho Chili To Go are: $5,000 + 50.40x where X = servings of chili Required: a. Determine the average cost per serving at each of the following monthly volumes: 10, 100, 200, 400, 800. b. Determine the monthly volume at which the average cost per serving is 50.50. 2-8 Automatic versus Manual Processing Kopy Kat Photocopy Service processes 1,000,000 photocopies per month at its mid- town service center. Approximately 60 percent of the photocopies require collating. Collating is currently performed by high school and college students who are paid $7.50 per hour. Each student collates an average of 5,000 copies per hour. Management is contemplating the lease of an automatic collating machine that has a monthly capacity of 5,000,000 photocopies, with lease and operating costs to- taling $1,450, plus $0.05 per 1,000 units collated. Required: Determine the total costs of collating 500,000 and 1,500,000 per month: 1. With student help 2. With the collating machine. b. Determine the monthly volume at which the automatic process becomes prefer- able to the manual process. c. Should Kopy Kat lease the automatic collating machine at this time? a