question archive Luisa Rentals offers machine rental services for concrete cutting
Luisa Rentals offers machine rental services for concrete cutting
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Luisa Rentals offers machine rental services for concrete cutting. Consider the following costs of the company over the relevant range of 4,000 to 10,000 hours of operating time for its concrete cutting equipment.
Hours of Operating Time
4,000
5,000
8,000
10,000
Total Costs: Variable Costs$ 20,000
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Fixed Costs 82,000
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Total Costs$102,000
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Cost per hour: Variable cost?
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Fixed cost?
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Total cost per hour?
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What are the estimated total fixed costs at a volume of 10,000 hours?
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