The fixed costs of the new employee and automobile would be


Westport Inspection Service specializes in inspecting cars that have been returned to automobile leasing companies at the end of their leases. Westport's charge for each inspection is $60; its average cost per inspection is $15. The owner wants to expand his business by hiring another employee and purchasing an automobile. The fixed costs of the new employee and automobile would be $3,000 per month. How many inspections per month would the new employee have to perform to earn a profit of $1,500?

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Cost Accounting: The fixed costs of the new employee and automobile would be
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