Answer: total
Fall
Explanation:
Total cost is given as the sum of fixed and variable cost.
Total cost = Fixed cost + variable cost.
Total cost before the reduction in fixed cost:
$2500 + $500 = $3000
Total cost after the reduction in fixed cost:
$2500 + $400 = $2900
Total cost fell by $100.
Fixed costs are costs that do not vary with production e.g. rent
Variable costs are costs that vary with production. E.g. shipping cost , wages
