The total cost of producing item X is equal to the sum of item X's fixed cost and variable cost. If the variable cost of producing X decreased by 5% in January, by what percent did the total cost of producing item X change in January?
(1) The fixed cost of producing item X increased by 13% in January.
(2) Before the changes in January, the fixed cost of producing item X was 5 times the variable cost of producing item X.
THE ACTUAL ANSWER IS "C".
( I cant understand why B cant be the answer.Since we know the proportion between the FC and the VC, cant we add them up like : TC= 5x + .95x ; an then find out the percentage difference in the TC? )
PLEASE HELP.
Thank You.
(1) The fixed cost of producing item X increased by 13% in January.
(2) Before the changes in January, the fixed cost of producing item X was 5 times the variable cost of producing item X.
THE ACTUAL ANSWER IS "C".
( I cant understand why B cant be the answer.Since we know the proportion between the FC and the VC, cant we add them up like : TC= 5x + .95x ; an then find out the percentage difference in the TC? )
PLEASE HELP.
Thank You.
