Bob’s Burgers Currently Produces and Sells 4000 Burgers Per Month $\begin{array}{ll}\text { Variable costs } & \$ .50 \text { per unit } \\\text { Fixed costs } & \$ 2000\end{array}$

question 73

Multiple Choice

Bob’s Burgers currently produces and sells 4000 burgers per month with the following costs:
$\begin{array}{ll}\text { Variable costs } & \$ .50 \text { per unit } \\\text { Fixed costs } & \$ 2000\end{array}$
Bob has recently switched food suppliers and anticipates that variable costs will decrease by $.05 per unit. In addition, Bob has renegotiated his store lease and fixed costs will be dropping by $40 per month.
-What will be Bob's new cost equation?

• A) Total costs = $2000 + $.50x
• B) Total costs = $2000 + $.45x
• C) Total costs = $4000 + $.50x
• D) Total costs = $1960 + $.45x

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