The firm sells gyros. the cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. the firm pays its employees $60 per day. she also incurs a fixed cost of $120 per day. calculate the firm's variable cost per day when it produces 50 gyros using two workers?

$220

Explanation:

The computation of the variable cost per day is shown below:

= Number of gyros produced × cost of the ingredient per gyro + wage rate per day × number of workers

= 50 gyros × 2 workers + $60 × 2 workers

= $100 + $120

= $220

Since the question is ask about the variable cost per day so we take the variable cost. Hence, we ignored the fixed cost per day

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