-The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been patchy. Each worker is paid $100 a day. Labour costs are the only variable cost of production. What is the total fixed cost of producing 64 bikes?
A) $500
B) $300
C) $400
D) $200

Question

-The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been patchy. Each worker is paid $100 a day. Labour costs are the only variable cost of production. What is the total fixed cost of producing 64 bikes?
A) $500 
B) $300 
C) $400 
D) $200

Quizplus · Accepted Answer

The total fixed cost is the cost that does not change with the level of output. Since labor costs are the only variable costs and each worker is paid $100 a day, the total cost of producing any number of bikes includes a fixed component (which is sought in the question) plus the variable labor costs. Without the specific costs or the number of bikes produced per worker per day provided in the question, we cannot calculate the exact labor costs or total costs directly from the information given. However, the correct answer to the question about the total fixed cost of producing 64 bikes, based on the options provided and assuming the question intends for us to select from those options without additional data, would be a guess based on typical question structures. Since no specific table or additional data is provided in the question, the correct answer is chosen based on the assumption that there is a mistake in the question's presentation.

-The Table Above Gives Costs at Jan's Bike Shop