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Bob's Burgers Bob's Burgers Currently Produces and Sells 12,000 Burgers

Question 23

Multiple Choice

Bob's Burgers Bob's Burgers currently produces and sells 12,000 burgers per month with the following costs:
Bob's Burgers Bob's Burgers currently produces and sells 12,000 burgers per month with the following costs:   Bob has recently switched food suppliers and anticipates that variable costs will decrease by $0.35 per unit. In addition, Bob has renegotiated his store lease and fixed costs will be dropping by $8,000 per month. Refer to the information provided for Bob's Burgers. What will be Bob's new cost equation? A)  Total costs = $60,000 + $2.75x B)  Total costs = $60,000 + $2.05x C)  Total costs = $8,000 + $0.35x D)  Total costs = $52,000 + $2.05x Bob has recently switched food suppliers and anticipates that variable costs will decrease by $0.35 per unit. In addition, Bob has renegotiated his store lease and fixed costs will be dropping by $8,000 per month.
Refer to the information provided for Bob's Burgers. What will be Bob's new cost equation?


A) Total costs = $60,000 + $2.75x
B) Total costs = $60,000 + $2.05x
C) Total costs = $8,000 + $0.35x
D) Total costs = $52,000 + $2.05x

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