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Suppose a pizza parlor has the following production​ costs: ​$3.00 in labor per​ pizza, ​$1.00 in ingredients per​ pizza, ​$0.90 in electricity per​ pizza, ​$3,500 in restaurant rent per​ month, and ​$200 in insurance per month. Assume the pizza parlor produces 3,000 pizzas per month. What is the variable cost of production​ (per month)?

Respuesta :

Answer:

variable cost of production per month $ 14700.00

Explanation:

Variable cost is given as

Variable cost per pizza= labour cost + ingredients+ electricity

where ,

 labour cost $3.00    

 ingredients cost $1.00

  electricity  cost $0.90                              

     Variable cost per pizza = 3.00+1.00+0.90 = $4.90

total production/month= 3000 pizzas

variable cost of production per month = 3000* 4.90 = $ 14700.00

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