Angry Bird Produces Decorative Birdhouses

Angry Bird produces decorative birdhouses. The company's average cost per unit is $40.00 at a production level of 2,000 birdhouses. What is the total cost of producing 2,000 birdhouses?
-If $10,000 of the total costs are fixed, what is the variable cost of producing each birdhouse?

A) $25.00
B) $17.50
C) $35.00
D) $40.00