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.What is Vipsana's total cost per day when she does not produce any gyros and does not hire any workers?
A)$0
B)$2
C)$60
D)$120

Question

Quizplus · Accepted Answer

The fixed cost of $120 per day is incurred whether or not Vipsana produces any gyros or hires any workers. Therefore, the total cost per day when she does not produce any gyros and does not hire any workers is equal to the fixed cost of $120 per day. Thus, the best choice is D.

Vipsana's Gyros House Sells Gyros