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This cost will remain the same regardless of the sales of hamburgers or economy prices.
1. The cost per unit of raw materials (variable cost) is $0.65. 650/1000=.65
The cost per unit of rent (fixed cost) is $9.00. 9000/1000=9
2. The number of annual units sold has now increased to 6000.
The total annual cost is now $3900.00. 650*6=3900 or 0.65*6000=3900
The cost per unit of raw materials is $0.65. 3900/6000=.65 (remains unchanged)
The cost per unit of rent is $1.5. 9000/6000=1.5 (decreases)
3. The number of annual units sold has now increased to 8000.
The total annual cost is now $5200...
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