A Firm Produces 1000 Units Per Week

Multiple Choice

A firm produces 1000 units per week.It hires 10 full-time workers (40 hours/week) at an hourly wage of $20.Raw materials are ordered weekly and they costs $5 for every unit produced.The weekly cost of the rent payment for the factory is $1,500.How do the overall costs breakdown for the week?

A) total variable cost is $5,000;total fixed cost is $1,500;total cost is $6,500
B) total variable cost is $5,000;total fixed cost is $9,500;total cost is $14,500
C) total variable cost is $13,000;total fixed cost is $1,500;total cost is $14,500
D) total variable cost is $13,000;total fixed cost is $9,500;total cost is $22,500