Question

Austin's total fixed cost is $3,600 a month at his cupcake bakery. austin employs 20 workers and pays each worker $600 a month. if labor is his only variable cost, what is austin's total cost?

Answer 1

Total cost = Fixed cost + Variable cost = $3,600 + 20($600) = $3,600 + $12,000 = $15,600
Therefore, Austin's total cost is $15,600