During the spring semester an enterpricing junior decided to operate a Larry\'s

Question

During the spring semester an enterpricing junior decided to operate a Larry's lemonade stand at the beach rather than work at his normal summer job. This franchise offers a single product that is available in a single size. The variable cost per cup is estimated to be $0.20. The fixed costs (fees,permits,rental of concession stand,etc) are estimated to be $4000.
What is the unit cost of a cup of lemonade if he anticipates selling 5000 cups during the course of the summer?

Please make sure it's exactly correct, that means a lot to me because I have only one attempt to answer that. Multiple people answering will help me. Thanks

Explanation / Answer

Total cost = Fixed cost + Var cost = $4000+5000*$0.20 = $5000 SO Cost per cup = Total cost/Total no of cups sold = $5000/5000 = $1.00

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