Total variable costs incurred during the week are?

Consider the following figures which refer to a firm’s production department during one week:

Wage bill ₦6,000, Rent, Rates, Depreciation ₦200, raw materials ₦800, Power ₦300.
Total variable costs incurred during the week are?

A. ₦7,300
B. ₦7,100
C. ₦1,300
D. ₦1,100

Correct Answer: Option B

B. ₦7,100

Explanation

Total variable costs also known as variable cost. TVC is the cost that varies or changes with the level of output.

TVC = 6000 + 800 + 300
TVC = ₦7100