Question

For a luxury doughnut producer the average selling price is £2. The average variable cost is 40% of the selling price and its fixed cost per day is £300. Calculate total costs per day assuming it produces 400 doughnuts per day.

Answer 1

Answer:

620

Step-by-step explanation:

selling 400 doughnuts means selling 800 £ worth of doughnuts. 800 x 0.4 ( to find 40 percent) = 320, + 300 because the the fixed cost = 620. :)