Q2 Michelle is in shoe industry. She has 10 regular employees and 3 seasonal/hourly employees, working three days a week. Each regular employee is paid 12k/mo., while seasonal/hourly employee is @ 50/hr. four hours per day. She is paying a rent for the place at 25k; insurance at 100k, and taxes at 150k. a) Compute for the total Fixed costs and the total variable cost. b) How much all in all is the Total Costs?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 23RQ: Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost,...
Question

SUBJECT: MICROECONOMICS

TOPIC: THE THEORY OF FIRM PRODUCTION AND COST

Compute and Explain 

Q2 Michelle is in shoe industry. She has 10 regular employees and 3
seasonal/hourly employees, working three days a week. Each regular
employee is paid 12k/mo., while seasonal/hourly employee is @
50/hr. four hours per day.
She is paying a rent for the place at 25k; insurance at 100k, and
taxes at 150k.
a) Compute for the total Fixed costs and the total variable cost.
b) How much all in all is the Total Costs?
Transcribed Image Text:Q2 Michelle is in shoe industry. She has 10 regular employees and 3 seasonal/hourly employees, working three days a week. Each regular employee is paid 12k/mo., while seasonal/hourly employee is @ 50/hr. four hours per day. She is paying a rent for the place at 25k; insurance at 100k, and taxes at 150k. a) Compute for the total Fixed costs and the total variable cost. b) How much all in all is the Total Costs?
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