# Computing Average Unit costs

*label*Accounting

*timer*Asked: Mar 24th, 2015

**Question description**

**Computing Average
Unit costs**

The total monthly operation cost of Chili to Go are

$12,000 + $0.50x where X = serving of chili

a. Determine the average cost per serving at each of the following monthly volumes 100; 1,000; 5,000 and 10,000

b. Determines the monthly volume at which the average cost per serving is $0.70