The cookie company in the mall hires only labor to produce cookies. The workers are paid $75 per day, and the cost of renting the space in the mall is $300 per day. The daily fixed costs of production are?

Question

Dustin Wilkerson

Business

19 June, 12:54

The cookie company in the mall hires only labor to produce cookies. The workers are paid $75 per day, and the cost of renting the space in the mall is $300 per day. The daily fixed costs of production are?

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Answers (1)

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Braedon Bradley · Answer 1

The daily fixed costs of production are labor and rent for a total amount of $375.

Explanation:

Fixed costs are costs that doesn't change when quantity increases or decreases. Production costs are the costs a business has to produce a good. According to this, the fixed costs of production include labor to produce cookies and the rent of the space in the mall.