Question

Rachel paid $600 per month to rent a workshop. She paid weekly salaries to her three employees, amounting to a total of $3600 for a month. She also purchased insurance coverage for her workshop (and her business) at a monthly premium of $300. She then spent $1,200 on purchasing raw materials each month. What was the average total cost of her establishment if she sold 300 units every month? Rachel’s average total cost is _? per month.

Answer 1

Answer:19

Step-by-step explanation:

Answer 2

The correct answer is that Rachel's workshop total cost is US$ 5,700 per month and US$ 19 of average cost per unit sold every month.

Step-by-step explanation:

1. Rachel's workshop monthly costs

Rent US$ 600

Salaries US$ 3,600

Insurance premium US$ 300

Raw materials US$ 1,200

Total monthly costs US$ 5,700

2. Rachel's workshop average monthly costs

Number of units sold per month = 300

Average monthly costs = Total monthly costs/Number of units sold

Average monthly costs = 5,700/300

Average monthly costs = US$ 19