Homework Answers
Variable cost includes labor cost, ingredients cost, and electricity cost. \
Fixed cost includes rent and insurance.
Pizza Parlor produces 4000 pizzas per month.
Variable Cost = ($5+$1+$0.50) * (4000)
Variable Cost = $6.50 * 4000
Variable Cost = $26000
The variable cost of production is $26000.
Answer: $26000.
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