Scenario 12-16
A certain firm produces and sells staplers.Last year,it produced 7,000 staplers and sold each stapler for $6.In producing the 7,000 staplers,it incurred variable costs of $28,000 and a total cost of $45,000.
-Refer to Scenario 12-16.The firm's fixed cost was
A) $7,000.
B) $17,000.
C) $28,000.
D) $42,000.

Question

Quizplus · Accepted Answer

To find the fixed cost, we need to use the formula: 
Total Cost = Fixed Cost + Variable Cost

From the scenario, we know that the total cost is $45,000 and the variable cost is $28,000.

$45,000 = Fixed Cost + $28,000

Fixed Cost = $17,000

Therefore, the firm's fixed cost was $17,000. Hence, the correct answer is B.

Scenario 12-16 A Certain Firm Produces and Sells Staplers.Last Year,it Produced 7,000