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)?

Variable cost: $21,000

Fixed cost: $2,450

Explanation:

The variable costs are the costs that change depending on the quantity of output like labor.

Variable cost of production per month= ($3*5,000)+($1*5,000)+($0.20*5,000)

Variable cost of production per month= $15,000+$5,000+$1,000

Variable cost of production per month= $21,000

The fixed costs are the costs that are constant despite the amount of output like rent.

Fixed cost of production per month= $2,000+$450

Fixed cost of production per month= $2,450

do u ahve any choices

answer; i believe that the correct answer is (d); the business benefits because owners can share responsibilities;