22. A bakery spends $140 per day on fixed costs and $90 per day for labor for each employee. One employee can bake 60 cakes in a day. What is the total cost to produce 300 cakes per day?
Answer: C
The total cost to produce 300 cakes per day is $590.
To calculate the total cost of producing 300 cakes per day, we first need to determine the number of employees required. Since one employee can bake 60 cakes in a day, 5 employees are needed to produce 300 cakes (300 cakes ÷ 60 cakes/employee). The total cost includes fixed costs, labor costs, and is calculated as follows: Fixed costs of $140, plus labor costs of $90 per employee multiplied by 5 employees, resulting in a total of $590.
A) $320
This option is incorrect because it underestimates the total cost. It does not account for both fixed costs and the necessary labor costs for the employees required to bake 300 cakes.
B) $230
This option is also incorrect as it fails to include the fixed costs and the full labor costs for the number of employees needed. The calculations do not match the necessary expenses for producing 300 cakes.
C) $590
This is the correct answer. The calculation includes $140 in fixed costs and $450 in labor costs ($90 per employee for 5 employees), totaling $590. This accurately reflects the total costs to produce 300 cakes.
D) $1,150
This option is incorrect as it significantly overestimates the total cost. It does not align with the calculated expenses of fixed costs and the actual required labor for producing 300 cakes.
Conclusion
The correct answer of $590 is supported by the appropriate calculations of fixed and variable costs associated with producing 300 cakes. Other options fail to account for the full extent of costs, either underestimating or overestimating the necessary financial outlay. Thus, option C correctly encapsulates the total expenses incurred in this scenario.