Assume the total monthly operating costs of a McDonald's restaurant are: $40,000 + $0.75X where X = Number of salads orders (a) Determine the average cost per salad at each of the following monthly volumes: 1,000; 10,000; 50,000; 100,000. Round answers to two decimal places. Volume Average Unit Cost 1,000 Answer 0 10,000 Answer 0 50,000 Answer 0 100,000 Answer O (b) Determine the monthly volume at which the average cost per serving is $2.35.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume the total monthly operating costs of a McDonald's restaurant are: $40,000 + $0.75X where X Number of salads
orders
(a) Determine the average cost per salad at each of the following monthly volumes: 1,000; 10,000; 50,000; 100,000.
Round answers to two decimal places. Volume Average Unit Cost 1,000 Answer 0 10,000 Answer 0 50,000 Answer 0
100,000 Answer O
(b) Determine the monthly volume at which the average cost per serving is $2.35.
Transcribed Image Text:Assume the total monthly operating costs of a McDonald's restaurant are: $40,000 + $0.75X where X Number of salads orders (a) Determine the average cost per salad at each of the following monthly volumes: 1,000; 10,000; 50,000; 100,000. Round answers to two decimal places. Volume Average Unit Cost 1,000 Answer 0 10,000 Answer 0 50,000 Answer 0 100,000 Answer O (b) Determine the monthly volume at which the average cost per serving is $2.35.
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