The total cost of producing item \(X\) is equal to the sum of item \(X\)'s fixed cost and variable cost. If the variable

[M7MBA]

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 \(X.\)

Answer: C

Source: Manhattan GMAT