Question

For Jill Johnson's pizza restaurant, Suppose the total cost (TC) of producing 10,000 tennis balls is $30,000, and the fixed cost (FC) is $10,000.

a. How large is the variable cost of this quantity of output?

Answer 1

The variable cost for producing 10,000 units is $20,000.

Step-by-step explanation:

The variable cost is the portion of the total cost that varies with the quantity of output produced. To find the variable cost, we subtract the fixed cost from the total cost.

In this case, the fixed cost is $10,000 and the total cost is $30,000. So, the variable cost is $30,000 - $10,000 = $20,000.

Therefore, the variable cost for producing 10,000 units is $20,000.