Jack's Bakery has a total cost of production for two levels of activity is as follows:

	Production Cost	Activity level
Level 1	$6,750	3,000
Level 2	$9,250	5,000

The variable production cost per unit and the total fixed production cost both remain constant in the range of activity shown. Calculate the value for fixed cost.

a.

$3,500

b.

$2,000

c.

$3,000

d.

$2,500