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17 January, 03:08

This cost is a mixed cost (part variable and part fixed). The variable cost of producing each handbag is $29. What are the fixed costs of producing all of the handbags?

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  1. 17 January, 03:11
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    For this, Let suppose that 14585 bags are produced at the cost of $1595218. (for solution suitable to your situation, you can change values.)

    Explanation:

    total variable cost is=14585*29=422965

    What are the fixed costs of producing all of the handbags

    =total cost-total variable cost

    =1595218-422965

    =1,172,253 is answer
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