Via Gelator is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:
Fixed Element per Month Variable Element per Liter Actual Total for June
Revenue $27.00 $160,540
Raw materials $6.15 $38,430
Wages $7,100 $2.90 $24,900
Utilities $3,130 $1.70 $14,200
Rent $4,100 $4,100
Insurance $2,850 $2,850
Miscellaneous $800 $1.85 $11,790
While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $7,100 plus $2.90 per liter of gelato sold and the actual wages for June were $24,900. Via Gelato expected to sell 6,000 liters in June but actually sold 6,200 liters.