Answer:
The annual fixed cost of e-commerce option is $2,180.00 as calculated below:
Explanation:
In calculating the e-commerce option annual fixed cost,it is very imperative that one understands the question inside-out.In other words,one needs to understand the e-commerce will not just cost $15 per month,but it costs $15 per month in addition to the $2000 annual cost cited in the first option.
In essence, the fixed cost of the e-commerce option can be computed thus:
Fixed cost per year=$2000+(15*12)
Fixed cost per year=$2000+$180
Fixed cost per year=$2,180
Fixed cost is that cost that remained unchanged at given scale of operation,as it is seen here it is not based on the volume of sales or output produced.