-The above table gives some of the costs of the Delicious Pie Company. What is the total fixed cost of producing 100 pies?
A) $300
B) $400
C) $700
D) More information is needed to calculate the total fixed cost.

Question

-The above table gives some of the costs of the Delicious Pie Company. What is the total fixed cost of producing 100 pies?
A) $300 
B) $400 
C) $700 
D) More information is needed to calculate the total fixed cost.

Quizplus · Accepted Answer

Fixed costs are those that do not change with the level of production. In this case, the fixed costs are the rent and the salaries of the bakers. The rent is $200 per month and the salaries of the bakers are $200 per month. Therefore, the total fixed cost of producing 100 pies is $400.

-The Above Table Gives Some of the Costs of the Delicious