If the fixed cost of producing seven video games is $14, and the variable cost of producing seven video games is $12, how much i

Question

Marta_Voda [28]

4 years ago

6

If the fixed cost of producing seven video games is $14, and the variable cost of producing seven video games is $12, how much i

s the total cost of producing seven video games? $21 $7 $26 $2

Business

2 answers:

zalisa [80] · Answer 1 · 2022-01-22T18:10:41+03:00

The total cost of producing seven video game is $26.
The fixed cost refers to the cost of input during production process which is constant in amount the quantity of products produced notwithstanding while variable cost refers to those costs that vary depending on the quantity of goods produced. To find the total cost of producing a product, the variable and the fixed costs have to be added together.

melisa1 [442] · Answer 2 · 2022-01-22T19:54:38+03:00

The total cost of producing seven video games is $26.

Further Explanation:

Fixed cost: The fixed cost is the cost that remains same even if the level of production changes.

Example of fixed cost: rent, wages, interest payment, and depreciation.

Variable cost: The variable cost is the cost that varies with the level of production.

Example of variable cost: raw material cost, labor costs, and utility costs.

Total Cost: Total cost refers to the cost incurred in producing a certain amount of goods. The total cost comprises of fixed cost and variable cost. The Formula for calculating total cost is:

Total cost (TC) = Fixed cost (FC) + Variable cost (VC)

Calculate the total cost of producing seven video games:

Total cost = Fixed cost + Variable cost of producing seven video games

= $14 +$12

=$26

Therefore, the total cost of producing seven video games is $26.

Learn more:

1. The span of control

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2. The percentage of sales method

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3. The sales budget

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Answer details:

Grade: High School

Subject: Business Studies

Chapter: Cost of production

Keywords: Total cost, fixed cost, the variable cost, producing seven video games, seven video games, level of production, Production cost, video games, cost of production, of producing, variable cost of producing, total cost of producing, VC, TC, FC.