Suppose a pizza parlor has the following production costs: $3.00 in labor per pizza, $4.00 in ingredients per pizza, $0.40 in electricity per pizza, $3,000 in restaurant rent per month, and $350 in insurance per month. Assume the pizza parlor produces 4,000 pizzas per month. What is the variable cost of production (per month)? The variable cost of production is $. (Enter your response as an integer.)

Suppose a pizza parlor has the following production costs: $3.00 in labor per pizza, $4.00 in ingredients per pizza, $0.40 in electricity per pizza, $3,000 in restaurant rent per month, and $350 in insurance per month. Assume the pizza parlor produces 4,000 pizzas per month. What is the variable cost of production (per month)? The variable cost of production is $. (Enter your response as an integer.)

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section21.3: Production

Problem 3ST

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Suppose a pizza parlor has the following production costs: $5.00 in labor per pizza, $3.00 in ingredients per pizza, $0.20 in electricity per pizza, $1,500 in restaurant rent per month, and $250 in insurance per month. Assume the pizza parlor produces 1,000 pizzas per month. What is the variable cost of production (per month)? The variable cost of production is $ (Enter your response as an integer.) What is the fixed cost of production (per month)? The fixed cost of production is $ ☐. (Enter your response as an integer.)
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