At a local bistro, total fixed costs for June were $176,432. In that month, 8,652 covers were served. What was the fixed cost per cover for June?

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Multiple Choice

At a local bistro, total fixed costs for June were $176,432. In that month, 8,652 covers were served. What was the fixed cost per cover for June?

Explanation:
Fixed cost per cover is found by dividing total fixed costs by the number of covers. Here, 176,432 divided by 8,652 equals about 20.391, which rounds to $20.39 per cover. This shows how fixed costs are allocated evenly across each guest served; as more covers are served, the cost per cover from fixed costs decreases.

Fixed cost per cover is found by dividing total fixed costs by the number of covers. Here, 176,432 divided by 8,652 equals about 20.391, which rounds to $20.39 per cover. This shows how fixed costs are allocated evenly across each guest served; as more covers are served, the cost per cover from fixed costs decreases.

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