In: Accounting
Mighty Muffler, Inc. operates an automobile service facility that specializes in replacing mufflers on compact cars. The following table shows the costs incurred during a month when 600 mufflers were replaced. (Round "cost per muffler" to 2 decimal places.)
Number of Muffler Replacements | |||
500 | 600 | 700 | |
Total costs: | |||
Fixed costs | $59,400 | ||
Variable costs | 35,400 | ||
Total costs | $ 94,800 | ||
Cost per muffler replacement: | |||
Fixed cost | |||
Variable cost | |||
Total cost per muffler replacement |