Daisy incurs $7,200 per month in fixed costs operating her floral shop. She pays her employees $9.00 per hour and has three assistants, each working 120 hours per month. Her other variable costs are $800 per month. What are Daisy's total variable costs and total costs each month?
a. Total variable costs are $800; total costs are $8,000.
b. Total variable costs are $800; total costs are $11,240.
c. Total variable costs are $3,240; total costs are $11,240.
d. Total variable costs are $4,040; total costs are $11,240.
Ans: d. Total variable costs are $4,040; total costs are $11,240.
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