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

Question

Quizplus · Accepted Answer

Austin's total cost is the sum of his fixed costs and variable costs. The fixed cost is $3,600. The variable cost is the total wages paid to the workers, which is 20 workers * $600 = $12,000. Therefore, the total cost is $3,600 + $12,000 = $15,600.

Austin's Total Fixed Cost Is $3,600 a Month at His