Question

The total cost to produce 80 dolls is $1,200. If each doll costs $10 to produce, find the fixed

costs.

Answer 1

$
`$400`

Explanation:

Total Cost = Fixed + Variable Cost

Variable Cost = $10 × 80 = $800

$1200 = Fixed Cost + $800

Fixed Cost = $1200 - $800

Fixed Cost = $400