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Granite Tops for You uses 15 units of capital at $5,000 per unit and employs 50 employees at a cost of $500 each. What is the company's variable cost?

Respuesta :

Answer:

$25,000

Explanation:

Given that,

Units of capital used = 15

Per unit cost = $5,000

Number of Employees employed = 50

Cost of each employee = $500

In this question, the variable cost is the cost of employees.

Therefore,

Company's variable cost:

= Number of employees employed × Cost of each employee

= 50 × $500

= $25,000

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