Economics · Oct / Nov 2017 · Paper 13 · Question 15

An entrepreneur buys a workshop for $10 000 to make picture frames. In the first year he spent $40 000 on materials and employed two workers. He paid the workers for each frame produced with a total cost of $30 000. He bought a vehicle to deliver the frames for $10 000. What were his total variable costs?

1. A$40 000
2. B$70 000
3. C$80 000
4. D$100 000

As printed in the paper