Economics · May / June 2019 · Paper 11 · Question 15

An entrepreneur buys a workshop for $200 000 to make plastic boxes. In the first year of operation he spends $70 000 on materials, employs ten production workers paid by the amount produced (piece rate) at a total cost of $80 000 and buys two delivery vehicles for $10 000 each. What are his total variable costs?

1. A$100 000
2. B$150 000
3. C$220 000
4. D$370 000

As printed in the paper