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Therefore the cost for the rent will not vary from month to month.
In this assignment we are running a restaurant that serves hamburgers. As I described earlier the meat is the variable costs and the building rent is the fixed cost. In the below chart I have calculated the annual cost and the cost per unit if our restaurant was to sell 1000, 6000, and 8000 units:
1000 units sold Annual Cost Cost per unit 6000 Units Sold Annual Cost Cost per unit 8000 Units Sold Annual Cost Cost per unit
Raw Materials $650.00 $0.65 Raw Materials $3,900.00 $0.65 Raw Materials $5,200.00 $0.65
Building Rent $9,000...
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