Read the passage carefully and answer the questions based on the passage:

Macroeconomic Variables

Akriti Manufacturing Company produces flower vases. The cost of production for 100 vase includes rent of Rs. 10,000, salary for permanent staff of Rs. 10,000, cost of Labour Rs. 12,000 and Raw material of Rs. 18,000. Due to increased demand of vases the company plans to increase production to 200 vases. The variable cost per vase remains Rs. 300 and the fixed cost does not change.

Calculate total cost of production for producing 100 vases?

50,000

The correct answer is Option (1) → 50,000

From the passage:

• Fixed costs = Rent (10,000) + Salary (10,000) = 20,000

• Variable costs = Labour (12,000) + Raw Material (18,000) = 30,000

Now,
Total cost = Fixed cost + Variable cost
Total cost = 20,000 + 30,000 = 60,000