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.
Why is B not suff?
St. 2--> Cp= F + V
F = 5V
Now V= 0.95V
--> Now Cp= 5v+ 0.95V=5.95V
---> % change = 6v-5.95v /6v
---> 0.5/6 x 100=8.3 %