Suppose a pizza parlor has the following production costs:

$4.00 in labor per pizza,

$3.00in ingredients per pizza,

$0.60 in electricity per pizza,

$3,000 in restaurant rent per month, and

$400 in insurance per month.

Assume the pizza parlor produces 10,000 pizzas per month.

What is the variable cost of production (per month)?

What is the fixed cost?