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20 May, 02:21

g Batterson Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 28,000 units, the lease cost was $697,200. To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 26,400 units in a month? (Assume that this sales volume is within the relevant range.)

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  1. 20 May, 02:39
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    Average lease cost per unit = $26.41 per unit (Approx)

    Explanation:

    Given:

    Lease cost = $697,200

    Sales volume = 26,400 units in a month

    Find:

    Average lease cost per unit = ?

    Computation:

    ⇒ Average lease cost per unit = Lease cost / Sales volume

    ⇒ Average lease cost per unit = $697,200 / 26,400 units

    ⇒ Average lease cost per unit = $26.4090 per unit

    ⇒ Average lease cost per unit = $26.41 per unit (Approx)
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