Dapper Hat Makers is in the business of designing and producing specialty hats.The material used for derbies costs $4.50 per unit,and Dapper pays each of its two full-time employees $250 per week.If the company makes 30 derbies in a week,what is the variable cost per derby?
A)$4.50
B)$15.00
C)$16.67
D)$21.17

Question

Quizplus · Accepted Answer

The variable cost per derby includes only the cost of the materials used, which is $4.50 per unit. The employee salaries are a fixed cost and do not vary based on the number of derbies produced. Therefore, the variable cost per derby is $4.50.

Dapper Hat Makers Is in the Business of Designing and Producing