Suppose a pizza parlor has the following productions cost $4.00 in labor per pizza $2.00 in ingredients per pizza $0.20 in electircty per pizza $4,500 in restaurant rent per month and $200 in insurance per month.    Assume the pizza parlor produces 6,000 pizza per month What is the variable cost of production ( per month)  The variable cost of production is $ 37200   what is the fixed cost of production ( per month) The fixed cost of production is $??

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
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Suppose a pizza parlor has the following productions cost $4.00 in labor per pizza $2.00 in ingredients per pizza $0.20 in electircty per pizza $4,500 in restaurant rent per month and $200 in insurance per month. 

 

Assume the pizza parlor produces 6,000 pizza per month

What is the variable cost of production ( per month) 

The variable cost of production is $ 37200

 

what is the fixed cost of production ( per month)

The fixed cost of production is $??

 

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