Question - 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.