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?

a.

$80,000

b.

$75,000

c.

$45,000

d.

$115,000