Kielbasa Kings is an online wholesale distributor, with retail customers who order bulk shipments online. They have a one-year renewable lease on the firm's manufacturing facilities, equipment, and utilities. The annual rent is $100,000. They employ two workers at an annual salary of $30,000 each. The ingredients for each shipment cost $200. They currently sell 200 shipments a week for $1100 each. Increasing output by one shipment would cost an extra $1150. For this firm, $1150 is the:
marginal cost.
fixed cost.
total cost.
variable cost.