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    Compute the cost per broadcast hour

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    WMEJ is an independent television station run by a major state university. The station's broadcast hours vary during the year depending on whether the university is in session. The station's production-crew and supervisory costs are as follows for July and September.
    Cost Cost Boradcast Hours
    Cost Item Behavior Amount during month
    Production crew variable
    July $4,875 390
    September 8,000 640
    Supervisory employees fixed
    July 5,000 390
    September 5,000 640

    1. Compute the cost per broadcast hour during July and September for each of these cost items.

    2. What will be the total amount incurred for each of these costs during December, when the station's activity will be 420 broadcast hours?

    2. What will be the cost per broadcast hour in December for each of the cost items?

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    Solution Summary

    The expert computes the cost per broadcast hours.

    $2.49

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