Aladdin's Burgers currently produces and sells 4000 burgers per month with the following costs:

Variable costs	$0.50 per unit
Fixed costs	$2000

Aladdin has recently switched food suppliers and anticipates that variable costs will decrease by $0.05 per unit. In addition, Aladdin has renegotiated his store lease and fixed costs will be dropping by $40 per month.

What will be Aladdin's new cost equation?

Select one:

Total cost = $1,960 + $0.45x

Total cost = $1,600 + $0.45x

Total cost = $1,960 + $0.50x

Total cost = $1,600 + $0.50x