Solved

The Total Monthly Operating Costs of Kristy's Yogurt Ice Cream

Question 96

Essay

The total monthly operating costs of Kristy's Yogurt Ice Cream Shack are:
$3,500 + $0.90X, where X = 12 ounce serving
a. Calculate the average cost per serving at each of the following monthly volumes: 1,000, 2,000, 3,000 and 5,000, and
b. Determine the monthly volume at which the average cost per serving is $1.90

Correct Answer:

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a) Average cost @ 1,000 units = [$3,500 ...

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