Answer:
Total variable costs for the summer at each price:
a. = $10,185
b. = $5,820
c. = $1,455
Step-by-step explanation:
a. 35 lawns per week x 12 weeks x $24.25 variable cost
= 35 * 12 * $24.25
= $10,185
b. 20 lawns per week x 12 weeks x $24.25 variable cost
= 20 * 12 * $24.25
= $5,820
c. 5 lawns per week x 12 weeks x $24.25 variable cost
= 5 * 12 * $24.25
= $1,455
d. The variable cost, as can be seen from above, changes based on the volume of activity or production. The number of lawns influenced the cost, since the other indexes are the same in each case.
