At a Firm's Current Output Level of 200 Units Per

At a firm's current output level of 200 units per week,it has 10 employees at a weekly wage of $500 each.Raw materials,which are ordered and delivered daily,cost $1,000 per week.The weekly cost of the firm's capital is $1,250.Which of the following statements is correct?

A) Total variable cost is $5,000;total fixed cost is $2,250;total cost is $7,250.
B) Total variable cost is $6,000;total fixed cost is $1,250;total cost is $7,250.
C) Total variable cost is $1,250;total fixed cost is $6,000;total cost is $7,250.
D) Total variable cost is $2,250;total fixed cost is $500;total cost is $2,750.
E) Total variable cost is $1,500;total fixed cost is $1,250;total cost is $2,750.

Correct Answer:

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