What is the fixed cost of production per month

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Reference no: EM13181728

Suppose a pizza parlor has the following production costs: $3.00 in labor per pizza, $1.oo in ingredients per pizza, $0.20 in electricity per pizza, $2000 in restaurant rent per month, and $450 in insurance per month.

Assume the pizza parlor produces 5,000 pizzas per month.

What is the variable cost of production(per month)?

What is the fixed cost of production(per month)?

Reference no: EM13181728

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