1 pts 7) Chuck owns a factory that produces leather footballs. His total flixed cest equaled \( \$ 86,000 \) last year. His total cost cqualed \( \$ 286,000 \) last vear. Hence Chuck's \( \qquad \) A) total variable cost was zero. B) incurred an economic loss. C) total variable cest equaled \( \$ 200,000 \). D) total variable cost equaled \( \$ 372,000 \).

Chuck's total variable cost can be calculated by subtracting his total fixed cost from his total cost. In this case, \( \$ 286,000 - \$ 86,000 = \$ 200,000 \), so the correct answer is C) total variable cost equaled \( \$ 200,000 \). In the realm of manufacturing, understanding fixed and variable costs is crucial for determining profitability. Fixed costs remain constant regardless of production levels, like Chuck’s rent for the factory space, while variable costs fluctuate with output, such as materials and labor directly tied to football production. This insight helps business owners optimize operations and pricing strategies!