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Wage bill ₦6,000, Rent, Rates, Depreciation ₦200, Raw...

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 is B

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