Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's total variable cost?
A) $2,400
B) $2,000
C) $1,600
D) $800

Name: Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's total variable cost? A) $2,400 B) $2,000 C) $1,600 D) $800
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Question

Quizplus · Accepted Answer

The total cost is $2,000, and the fixed cost is $400. Therefore, the total variable cost is $2,000 - $400 = $1,600.

Ernie's Earmuffs Produces 200 Earmuffs Per Year at a Total