Austin's Total Fixed Cost Is $3,600 a Month at His

question 87

Multiple Choice

Austin's total fixed cost is $3,600 a month at his cupcake bakery. Austin employs 20 workers and pays each worker $600 a month. If labor is his only variable cost, what is Austin's total cost?

• A) $3,600
• B) $1,200
• C) $15,600
• D) $12,000

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Definitions:

Stock Price

The cost of purchasing a share of a company in the stock market; it fluctuates based on supply and demand.

Dividend Income

Earnings distributed to shareholders, usually derived from the company's profits, for holding the company's stock.

Stock Split

A corporate action to increase the number of outstanding shares through a proportional division, reducing the stock price accordingly.