Austin's total fixed cost is $3,600 a month for making 100,000 cupcakes 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 per month for making 100,000 cupcakes?
A)$3,600
B)$1,200
C)$15,600
D)$12,000

Question

Quizplus · Accepted Answer

- Austin's fixed cost is $3,600.
- The variable cost is the labor cost. He employs 20 workers and pays each worker $600 a month, so his total labor cost is $12,000 a month.
- Adding the fixed cost and variable cost, his total cost per month is $15,600 for making 100,000 cupcakes.

Austin's Total Fixed Cost Is $3,600 a Month for Making