Brian is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations: Rent $9,200, Depreciation on equipment $7,000, Wages $17,435, Motor oil $2 per quart. He estimates that each oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast 'n Clean Corporation a franchise fee of $1.10 per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil changes as follows: Quantity of Oil Changes 6,000 (a) 8,000 11,000 14,000 18,000 Brian anticipates that he can provide the oil change service with a filter at $39.77 each. Using the high-low method, determine variable costs per unit and total fixed costs. (Round variable cost to 2 decimal places, e.g. 52.75.) Variable cost Fixed cost Utility Costs $13,960 $17,300 $19,600 $22,600 $25,000 $ VA per unit
Brian is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations: Rent $9,200, Depreciation on equipment $7,000, Wages $17,435, Motor oil $2 per quart. He estimates that each oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast 'n Clean Corporation a franchise fee of $1.10 per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil changes as follows: Quantity of Oil Changes 6,000 (a) 8,000 11,000 14,000 18,000 Brian anticipates that he can provide the oil change service with a filter at $39.77 each. Using the high-low method, determine variable costs per unit and total fixed costs. (Round variable cost to 2 decimal places, e.g. 52.75.) Variable cost Fixed cost Utility Costs $13,960 $17,300 $19,600 $22,600 $25,000 $ VA per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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Please proper solution please and no image upload please no plagiarism

Transcribed Image Text:Brian is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first
year of operations: Rent $9,200, Depreciation on equipment $7,000, Wages $17,435, Motor oil $2 per quart. He estimates that each
oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast 'n Clean Corporation a franchise fee of
$1.10 per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil
changes as follows:
Quantity of Oil Changes
(a)
6,000
8,000
11,000
14,000
18,000
Brian anticipates that he can provide the oil change service with a filter at $39.77 each.
Fixed cost
Using the high-low method, determine variable costs per unit and total fixed costs. (Round variable cost to 2 decimal places, e.g.
52.75.)
Variable cost
$
Utility Costs
$13,960
$17,300
$19,600
$22,600
$25,000
LA
$
per unit
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