In 2011, the fixed costs of a company were $500,000, and its variable costs equaled $150,000. In 2010, the company made an annual profit of $200,000. It has been predicted that, despite a steady growth, the company's variable costs will likely equal $300,000 by 2013. The total costs of the company in 2011 were ________.
A) $350,000
B) $450,000
C) $650,000
D) $800,000
E) $950,000

Question

Quizplus · Accepted Answer

Total costs in 2011 = Fixed costs + Variable costs
Total costs in 2011 = $500,000 + $150,000
Total costs in 2011 = $650,000
Therefore, the answer is C.

In 2011, the Fixed Costs of a Company Were $500,000