Labor Total fixed Total variable Total cost Output (bikes) (workers) costs (dollars) cost (dollars) (dollars) 200 1 20 100 2 50 60 4 64 15) 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 cost of producing 50 bikes? A) $100 B) $300 C) $400 D) $500 E) $200
Labor Total fixed Total variable Total cost Output (bikes) (workers) costs (dollars) cost (dollars) (dollars) 200 1 20 100 2 50 60 4 64 15) 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 cost of producing 50 bikes? A) $100 B) $300 C) $400 D) $500 E) $200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Labor
Total fixed
Total variable
Total cost
Output (bikes)
(workers)
costs (dollars)
cost (dollars)
(dollars)
200
1
20
100
2
50
60
4
64
15) 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 cost of
producing 50 bikes?
A) $100
B) $300
C) $400
D) $500
E) $200
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