Respuesta :
Answer: If the pizza parlor produces 5000 pizzas a month its total variable costs per month will be
5000*(4.004 + 2.002+0.60060)
33,033 will be the total variable costs.
Explanation:
Answer:
Variable cost for production of 5000 Pizzas in the month is $33,000
Explanation:
The variable elements of the production costs are those that shift or change per quantity of item produced.
Some won't change, they are described as fixed e.g. Rent and Insurance from our present question
Variable Cost of production for the month
Labour - $4 x 5000 Pizzas = $20,000
Ingredients - $2 x 5000 Pizzas = $10,000
Electricity - 0.6 x 5000 Pizzas = $3,000
Total Variable Costs = $33,000
