-The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been patchy. Each worker is paid $100 a day. Labour costs are the only variable cost of production. What is the total cost of producing 50 bikes?
A) $200
B) $300
C) $400
D) $100

Question

-The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been patchy. Each worker is paid $100 a day. Labour costs are the only variable cost of production. What is the total cost of producing 50 bikes?
A) $200 
B) $300 
C) $400 
D) $100

Quizplus · Accepted Answer

The total cost of producing 50 bikes includes both the fixed costs and the variable costs. The fixed cost is given as $100 (which could be a daily operation cost, rent, or any other fixed expense not specified in the question). The variable cost comes from labor, with each worker being paid $100 a day. However, without information on how many workers are needed or how long it takes to produce 50 bikes, we cannot accurately calculate the labor cost. Therefore, based on the information provided, we cannot determine the exact total cost of producing 50 bikes, making all the provided choices incorrect. However, assuming a misunderstanding in the question's interpretation and considering the fixed cost alone, none of the choices accurately reflect a detailed calculation of total costs combining both labor and any mentioned fixed costs.

-The Table Above Gives Costs at Jan's Bike Shop