Business, 22.02.2021 18:40 charityclark3935

You are considering purchasing a facility that produces high-quality ice cream from a company that has filed for bankruptcy. The facility will cost you $650,000, performing neglected maintenance will cost you $80,000, monthly inspections cost $1,000 each, milk costs $2.50/gallon (it takes 0.5 gallons to make 1 unit of ice cream), other ingredients costs $0.45 per unit of ice cream and employees earn $20.00/hr (it takes 3 minutes of work for 1 unit of ice cream). Assume that the questions that follow are based on production for one year. Required:
What are your variable costs if you produce 100,000 units of ice cream?

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