Question

Yard Beautiful Enterprises produces lawn mowers. The total cost for the month of June is $201,780. During June, Yard Beautiful manufactured 580 lawn mowers. If the variable cost for one lawn mower is $206, what is the fixed cost for June?

a. $82,300
b. $59,345
c. $200,994
d. $201,780

Answer 1

The fixed cost for the month of June is $82,300.

Step-by-step explanation:

The fixed cost for the month of June can be calculated by subtracting the variable cost per lawn mower from the total cost for the month and then dividing by the number of lawn mowers produced. In this case, the fixed cost can be calculated as follows:

Fixed Cost = (Total Cost - (Variable Cost x Number of Lawn Mowers)) / Number of Lawn Mowers

Substituting the given values:

Fixed Cost = ($201,780 - ($206 x 580)) / 580

Fixed Cost = ($201,780 - $119,680) / 580

Fixed Cost = $82,300

Answer 2

The fixed cost for the month of June is $82,300.

Step-by-step explanation:

The fixed cost for the month of June can be calculated by subtracting the variable cost per lawn mower from the total cost for the month and then dividing by the number of lawn mowers produced. In this case, the fixed cost can be calculated as follows:

Fixed Cost = (Total Cost - (Variable Cost x Number of Lawn Mowers)) / Number of Lawn Mowers

Substituting the given values:

Fixed Cost = ($201,780 - ($206 x 580)) / 580

Fixed Cost = ($201,780 - $119,680) / 580

Fixed Cost = $82,300

Answer 3

The fixed cost for the month of June is $82,300.

Step-by-step explanation:

The fixed cost for the month of June can be calculated by subtracting the variable cost per lawn mower from the total cost for the month and then dividing by the number of lawn mowers produced. In this case, the fixed cost can be calculated as follows:

Fixed Cost = (Total Cost - (Variable Cost x Number of Lawn Mowers)) / Number of Lawn Mowers

Substituting the given values:

Fixed Cost = ($201,780 - ($206 x 580)) / 580

Fixed Cost = ($201,780 - $119,680) / 580

Fixed Cost = $82,300