Question

Joao's Java Jungle sells cups of coffee. Joao pays each of his workers $50 per day while incurring a fixed cost of $100 and a variable input cost of $0.20 per cup of coffee for beans, cream, sugar, and paper cups. What is Joao's total cost per day when he does not hire any workers and does not produce any cups of coffee?

Answer 1

Answer:

Total cost= $100

Explanation:

Giving the following formula:

Joao pays each of his workers $50 per day while incurring a fixed cost of $100 and a variable input cost of $0.20 per cup of coffee for beans, cream, sugar, and paper cups.

If he does not hire any workers and does not sell a single cup of coffee, his total cost equals his fixed cost.

Total cost= $100