This cost is a mixed cost (part variable and part fixed). The variable cost of producing each handbag is $29. What are the fixed costs of producing all of the handbags?

Question

Business

Areli Pena

7 July, 01:56

This cost is a mixed cost (part variable and part fixed). The variable cost of producing each handbag is $29. What are the fixed costs of producing all of the handbags?

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Answers (1)

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Taniya Stevens · Answer 1

For this, Let suppose that 14585 bags are produced at the cost of $1595218. (for solution suitable to your situation, you can change values.)

Explanation:

total variable cost is=14585*29=422965

What are the fixed costs of producing all of the handbags

=total cost-total variable cost

=1595218-422965

=1,172,253 is answer