Suppose a pizza parlor has the following production costs: $3.00 in labor per pizza, $1.00 in ingredients per pizza, $0.90 in electricity per pizza, $3,500 in restaurant rent per month, and $200 in insurance per month. assume the pizza parlor produces 3,000 pizzas per month. what is the variable cost of production (per month)?

variable cost of production per month $ 14700.00

Explanation:

Variable cost is given as

Variable cost per pizza= labour cost + ingredients+ electricity

where ,

 labour cost $3.00    

 ingredients cost $1.00

  electricity  cost $0.90                              

     Variable cost per pizza = 3.00+1.00+0.90 = $4.90

total production/month= 3000 pizzas

variable cost of production per month = 3000* 4.90 = $ 14700.00

d. automatic stabilizers.

explanation:

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return