Jason's carpentry business has a fixed cost of $5,000 from equipment and tool rental and a variable cost of $40,000 when he builds 100 bookshelves per year. The total cost of producing 100 bookshelves is:

Question

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The total cost of producing 100 bookshelves includes both the fixed cost of $5,000 and the variable cost of $40,000, adding up to $45,000.

Jason's Carpentry Business Has a Fixed Cost of $5,000 from Equipment