Determining the expected labor cost


Barrie's Bagel Bakery projects labor costs of $25,000 in a period when 50,000 units are produced. If labor is a variable cost, and if production is expected to drop to 45,000 units in the next period, what is the expected labor cost in the next period?

A. $25,000

B. $22,500

C. $20,000

D. $27,500

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Finance Basics: Determining the expected labor cost
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