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The manager at Screaming Trees has been trying to calculate the portion of the companys overhead expenses that is fixed and the portion that is variable. Over the past twelve months, the number of yards of mulch processed was highest in July, when the total monthly overhead costs totaled $29,000 for 32,000 yards of mulch processed. The lowest number of yards of mulch processed in the last twelve 4 months occurred in October, when total overhead costs were $25,000 for 25,000 yards of mulch processed What was the variable cost per yard? O A. $0.91 O B. $1.00 o c. $057 a tid。D. $1.75 4

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C. $0.57

Variable cost per yard = ($29,000 - $25,000) / (32,000 - 25,000)

Variable cost per yard = $4,000 / 7,000

Variable cost per yard = $0.57

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