A poultry farmer incurred the following costs: feed = ₦450,000; drugs = ₦50,000; labour = ₦100,000; depreciation on equipment = ₦80,000; and land rent = ₦70,000. What is the total variable cost?

Variable costs change with the level of production and include feed (₦450,000), drugs (₦50,000), and labour (₦100,000), giving a total variable cost of ₦600,000. Depreciation on equipment (₦80,000) and land rent (₦70,000) are fixed costs because they do not vary with output. Option B includes all costs (total cost), and option D incorrectly adds depreciation.