Question

If Daniel's cupcake shop has fixed

costs of $10,000, and a variable cost
of $1.00 per cupcake, what are his
total costs if he sells 2,000 cupcakes?

Answer choices:

- $14,000
- $12,000
- $8,000
- $10,000

Answer 1

$1 per cupcake for 2000 cupcakes = $2,000

Add the fixed costs:

$2000 + $10000 = $12.000

Answer: $12,000