Answer:
$65,000
Explanation:
Given information about Lauren;
Total cost Tc = $150,000
Variable cost Vc = $85,000
Fixed cost Fc = ?
Total cost = Fixed cost + Variable cost
The fixed cost is the cost incurred irrespective of the level of activities while the variable cost is the cost incurred that depends on the level of activities
The combination of both costs gives the total cost.
Therefore,
$150,000 = $85,000 + Fc
Fc = $150,000 - $85,000
Fc = $65,000
