Compute the average cost per serving

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Reference no: EM13123162

Variable Costs Fixed Costs Mixed Costs

The total monthly operating costs of Frosty Fruits are:

$4,000 + $0.80X, where X = 16 ounce servings

Calculate the average cost per serving at each of the following monthly volumes: 1,500; 2,000; 3,000; and 5,000, and determine the monthly volume at which the average cost per serving is $1.00.

Reference no: EM13123162

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