The owner of Big Burger Restaurant wants to determine the unit cost associated with their

10,000 sales of burgers for January 201A. The following variable expenses per burger are
available:

Burger patty P5.50

Bread 2.00
Ketchup 0.50
Lettuce 6.00
Mayonnaise 0.50
Total variable cost per unit P14.50 per burger

The fixed expenses of Big Burger Restaurant are the following:

Labor P5,500
Rent 2,500
Insurance 500
Advertising 2,000
Utilities 4,800
Total fixed cost P15,300

A. Compute the unit cost per burger.

Unit Cost = Total VC per unit + Total FC/Total Number of Sale

14.50 + 15,300/10,000

=16.03