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You are running a business that sells office supplies. Your monthly lease on the space is $3600.

This past

week, you sold 820 rulers for $1.25 each (they cost you $0.25 each), 900 reams of paper at for $7.99 per ream (they cost you $4 each), 172 computers at an average price of $674.99 (your cost: $497), and 86 printers at an average price of $109.95 (your cost: $89).

Over the course of this week, you paid 4 part-time employees $8 per hour, and they each worked 20 hours. You also pay a full-time manager, who is on salary, $41,600 per annum.

As it was back-to-school time, you ran a special flyer that cost you $1700 to print and deliver. Your electricity bill averages out to $758.33 per month, and you also employ the services of an accountant four times a year to manage books and do taxes, at a cost of $5400 per year.


What are your total variable costs for the week?

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