Question

The firm sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. The firm pays its employees $60 per day. She also incurs a Fixed Cost of $120 per day. Calculate the firm's Variable cost per day when it produces 50 gyros using two workers?

Answer 1

Heya mate!!

$220 is the answer to your question.

50 gyros will be produced for $100 and 2 workers will be hired for $120 for a day.

The total is 100+120=$220

Hope it helps u dear✌️✌️

Answer 2

$220

Step-by-step explanation:

The computation of the variable cost per day is shown below:

= Number of gyros produced × cost of the ingredient per gyro + wage rate per day × number of workers

= 50 gyros × 2 workers + $60 × 2 workers

= $100 + $120

= $220

Since the question is ask about the variable cost per day so we take the variable cost. Hence, we ignored the fixed cost per day