1.
Labor
(workers) Output
(bikes) Total fixed costs
(dollars) Total variable cost
(dollars) Total cost
(dollars)
0 0 200
1 20 100
2 50
3 60
4 64
The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total cost of producing 50 bikes?