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Vipsana\'s Gyro House sells gyros. The cost of ingredients (pita, meat, spices,

ID: 1237768 • Letter: V

Question

Vipsana's Gyro House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana
pays her employees $60 per day. She also incurs a rent of $20 per day. Answer questions 17-10 accordingly.

18) Calculate Vipsana's variable cost per day when she produces 50 gyros using two workers?
A) $100 B) $124.40 C) $220 D) $240



19) Calculate Vipsana's total cost per day when she produces 50 gyros using two workers?
A) $100 B) $124.40 C) $220 D) $240


20) Calculate Vipsana's average fixed cost per day when she produces 50 gyros using two workers?
A) $2.00 B) $2.40 C) $0.40 D) $6.80


21) What is Vipsana's total cost per day when she does not produce any gyros and does not hire any workers?
A) $0 B) $2 C) $60 D) $20

Explanation / Answer

18) Variable cost per day when she produces 50 gyros using two workers 50x2+(60x2)= 220 C) $220 19) 50x2+(60x2)+ 20= 240 D) $240 20) 20/50 C) $0.40 21) D) $20