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29 June, 03:00

Doreen's Dairy produces and sells Swiss cheese. Last year, it produced 7,000 pounds and sold each pound for $6. In producing the 7,000 pounds, the dairy incurred variable costs of $28,000 and a total cost of $40,000.

The firm's fixed cost was

A. $2,000.

B. $28,000.

C. $12,000.

D. $42,000.

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  1. 29 June, 04:58
    0
    The firm's fixed cost was

    A. $2,000.

    Explanation:

    the total fixed costs divided by the total number of units produced. a total cost of dairy incurred is $40,000. variable costs of dairy incurred is $28,000 It produced 7,000 pounds and sold it each pound for $6. Few examples of fixed costs are Interest expense. Salaries Property taxes. Insurance Rent. Utilities. The total cost is the Cost of production which does not change with the changes in the quantity of products produced by a firm in a short period of time. The firm's fixed cost was $2,000.
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