Cute Wheels Cars produces custom wheels. The company's average cost per wheel is $189.50 when it produces 5,000 wheels per month.
Required:
1. What is the total cost of producing 5,000 wheels?
2. If $500,000 of the total cost is fixed, what is the variable cost of producing each wheel?
3. What is Cute Wheels cost equation?
4. What is the expected total cost of producing 7,000 wheels in a month?

Question

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The Answer of Cute Wheels Cars produces custom wheels. The company's average cost per wheel is $189.50 when it produces 5,000 wheels per month.
Required:
1. What is the total cost of producing 5,000 wheels?
2. If $500,000 of the total cost is fixed, what is the variable cost of producing each wheel?
3. What is Cute Wheels cost equation?
4. What is the expected total cost of producing 7,000 wheels in a month?

Cute Wheels Cars Produces Custom Wheels