Question

Shalini set up a lemonade stand during her school's annual fest. She spent Rs 2000 to set up the stand. On an average, the cost of creating a glass of lemonade is Rs 5/glass. If she made 300 glasses of lemonade, what is her total cost?

• A. Rs 2000
• B. Rs 3000
• C. Rs 3500
• D. Rs 4500

Answer 1

The correct option is C

Rs 3500

Fixed Cost = Rs 2000
Variable cost = Rs 5/glass $\times$ 300 glasses = Rs 1500
Total cost = Fixed cost + Variable cost
= Rs 2000 + Rs 1500
= Rs 3500