A firm produces 500 units per week. It hires 20 full-time workers (40 hours/week) at an hourly wage of $15 . Raw materials are ordered weekly and they costs $10 for every unit produced. The weekly cost of the rent payment for the factory is $2,250 . How do the overall costs breakdown?
a. total variable cost is $17,000 . total fixed cost is $2,250; total cost is $19,250
b. total variable cost is $5,000 . total fixed cost is $2,250; total cost is $7,250
c. total variable cost is $5,000 . total fixed cost is $14,250; total cost is $19.250
d. total variable cost is $12,000 . total fixed cost is $7,250; total cost is $19,250
a
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