Sally's variable cost per day when she produces 50 gyros using two workers is $220.
Fixed costs do not change with production, such as rent and mortgage payments. Mortgage payments don't vary based on whether there are zero or one million units produced; they stay the same regardless of output.
Costs for production inputs and hourly wages are examples of variable costs. Costs that are known as "variables" change as a result of manufacturing.
Given:
Cost of ingredients = $2.00
Pay for one employee = $60
Fixed Cost per day = $120
Formula to be used:
Variable cost per day = (cost of ingredients × 50) + pay for two employees
(50 × 2) + (60 × 2)
100 + 120 = 220
To learn more about how to calculate fixed and variable costs, visit https://brainly.com/question/24158600
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