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Question 44

EcoThread Apparel Costs

EcoThread Apparel is a small startup manufacturing sustainable clothing. The table below shows the business's operating costs for two different monthly production levels.

Table 1: EcoThread Apparel Monthly Cost Breakdown

Cost CategoryMonth 1 (500 garments produced) (€)Month 2 (1,000 garments produced) (€)
Studio rent800800
Organic cotton fabric1,0002,000
Machinist wages1,2002,000
Factory electricity120180
Insurance150150
Packaging & shipping300600
Website hosting5050
Total Costs3,6205,780

Identify one fixed cost in Table 1. Explain your answer with reference to the data in the table.

[3]

Business economics Questions

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