Answer:
Instructions are listed below
Explanation:
Giving the following information:
A business incurs the following costs:
Labor: $165/unit
Materials: $95/unit
Rent: $200,000/month
Assume the firm produces 3 million units per month
Total variable costs= (direct labor + direct material)*units
Total variable cost= (165+95)*3million= $780,000,000
Total fixed cost= $200,000
Total cost= total fixed cost + total variable cost
Total cost= 200,000 + 780,000,000= $780,200,000
