Solution
✅ Correct Option: 2
Option 2: 20,000 -> Fixed costs are expenses that remain constant regardless of the quantity produced. Whether the company produces 200 vases, 100 vases, or 500 vases, the fixed cost stays the same. These typically include rent, salaries, insurance, and equipment costs that don't vary with production volume. In this case, the fixed cost is 20,000, which applies to any production level including 200 vases. -> correct