A company produces components for washing machines. Each component has a raw material input of $20 and labour input that costs $10. The company must also pay the rent of the factory totaling $20,000 per year, production supervisor's salary of $25,000 per year and the managing director's salary of $35,000 per year. The budgeted output is 10,000 units per year. 

What is the fixed production cost?

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Fixed production costs are costs that do not vary with the ... View the full answer