Unit cost of a cup of lemonade

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Reference no: EM13134004

During the spring semester an enterprising junior decided to operate a Larry's Lemonade stand at the beach rather than work at his normal summer job. This franchise offers a single product that is available in a single size. The variable cost per cup is estimated t be $.20. The fixed costs, (fees, permits, rental of concession stand, etc) are estimated to be $4000.

What is the unit cost of a cup of lemonade if he anticipates selling 5000 cups during the courses the summer?

Unit cost of a cup of lemonade =$___________

Reference no: EM13134004

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