Question

Cindy operates Birds-R-Us, a small store manufacturing and selling 200 bird feeders per month. Cindy's monthly total fixed costs are $800, and her monthly total variable costs are $1,500. If for some reason Cindy's variable cost decreased to $1,000, then her:

Answer 1

total cost decrease by 500 and Cindy's income increase by 500

Step-by-step explanation:

variable cost decreased to 1,000 from 1,500

this will increase their gross profit and therefore, his net income as well.

It is more profitable to sale bird feeders because their cost decreased.