Answer:
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
