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Question 1: Computing Average Unit Costs
The total monthly operating costs of Chili To Go are:
$10,000+ $0.30X
where
X = servings of chili
Question 1(a) Determine the average cost per serving at each of the following monthly volumes: 100; 1,000; 5,000; and 10,000.
Round answers to one decimal place.
VolumeAverage Unit Cost100Answer
1,000Answer
5,000Answer
10,000Answer
Question 1(b) Determine the monthly volume at which the average cost per serving is $0.70.
Production budget in units and direct material usage budget and direct material purchases budget, direct manufacturing labour cost budget
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