Zero Time Oil Change has been in business for 6 months. The company pays $0.50 per quarter for the oil it uses in servicing cars. Each job requires an average of 4 quarts of oil. The company estimates that in the next three months, it will service 240, 288, and 360 cars.
1. Compute the cost of oil for each of the three months and the total cost for all three months.
2. Complete the following sentences by choosing the words that best describe the cost behavior at Zero Time Oil Change:
a) Cost per unit
b) Total available cost per month as the quantity of oil used