The average unit cost at a monthly volume of 9,000 units is $3, and the average unit cost at a monthly volume of 22,500 units is $2.10.
Required:
A. Develop an equation for total monthly costs. If required, round your answer to two decimal places.
| Total monthly costs |
= |
Fixed costs per month |
+ |
Variable cost |
|
= |
$( ) |
+ |
($( ) per unit X number of units) |
B. What are the total monthly costs if 15,000 units are produced?
$( )