16) The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. Eachworker is paid $100 a day. Labor costs are the only variable costs of production. What is the total fixed cost ofproducing 64 bikes?A) S400B) S300C) $600D) $200E) $500 LaborTotal fixedTotal variableTotal costOutput (bikes)(workers)costs (dollars)cost (dollars)(dollars)200120100503.60464

A fixed cost is a cost that does not change even if a business experiences changes in its sales…

16) The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total fixed oost of producing 64 bikes? A) S400 B) $300 9 S600 D) S200 E) $500

16) The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total fixed oost of producing 64 bikes? A) S400 B) $300 9 S600 D) S200 E) $500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

16) The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. Each
worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total fixed cost of
producing 64 bikes?
A) S400
B) S300
C) $600
D) $200
E) $500

Labor
Total fixed
Total variable
Total cost
Output (bikes)
(workers)
costs (dollars)
cost (dollars)
(dollars)
200
1
20
100
50
3.
60
4
64

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