-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The total cost of producing 80 units equals
A) less than $5.
B) more than $5 and less than $110.
C) more than $110 and less than $120.
D) more than $120 and less than $150.
E) more than $150.

Question

-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The total cost of producing 80 units equals
A) less than $5. 
B) more than $5 and less than $110. 
C) more than $110 and less than $120. 
D) more than $120 and less than $150. 
E) more than $150.

Quizplus · Accepted Answer

To find the total cost of producing 80 units, calculate the variable cost (labor cost) and add it to the fixed cost. If producing 80 units requires 3 workers, the labor cost is 3 workers * $20 = $60. Adding the fixed cost of $60, the total cost is $60 + $60 = $120. Thus, the total cost is more than $120 and less than $150.

-The Table Above Shows a Total Product Schedule