Vipsana's Gyros House sells gyros.The cost of ingredients (pita, meat, spices, etc.)to make a gyro is $2.00.Vipsana pays her employees $60 per day.She also incurs a fixed cost of $120 per day.Calculate Vipsana's variable cost per day when she produces 50 gyros using two workers?
A)$100
B)$124.40
C)$220
D)$240

Question

Quizplus · Accepted Answer

The variable cost includes the cost of ingredients and labor. For 50 gyros, the ingredient cost is 50 x $2 = $100. The labor cost for two workers is 2 x $60 = $120. Therefore, the total variable cost is $100 + $120 = $220.

Vipsana's Gyros House Sells Gyros