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Exercise 1 (Total costs and unit costs) A student association has hired a musical group for a graduation pa rty. The cost will be fixed amount P4,000. Required: 1. Suppose 500 people attend the party. What will be the total cost of the musical group? The unit cost per person? group? The unit cost per person? party use the unit cost in requirement 1? The unit cost in requirement 2? 2. Suppose 2,000 people attend. What will be the total cost of the musical 3. For prediction of total costs, should the manager of the manager of the What is the major lesson of this problem?

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