Bret Percy owns an art gallery and accepts paintings and sculpture on consignment. He has limited costs and is cautious about accepting artists. When he accepts one, he arranges for an opening show with an average cost of $300. The total cost of running the gallery, including rent, furniture and fixtures, utilities, and a part-time assistant, amounts to $60,000 per year. Using the total cost formula, what is the total cost for Bret in a year with 8 opening?

total cost for Bret in a year with 8 opening is $62400

Explanation:

given data

average cost = $300

total cost = $60000 per year

to find out

total cost for Bret in a year with 8 opening

solution

we know here no of opening is 8

so variable cost will be

variable cost = 8 * 300

variable cost = $2400

so

total cost for Bret in a year will be

total cost = variable cost + fixed cost

total cost = 2400 + 60000

total cost = $62400

so total cost for Bret in a year with 8 opening is $62400