Asked by
Catherine Chong
on Dec 05, 2024
Verified
The rent for Oscar's sporting goods store is $2,500 per month.Oscar pays his staff $9 per hour,and his monthly electricity bill averages $700,depending on his total hours of operation.Oscar's fixed costs of production equal:
A) $2,500 per month.
B) $3,200 per month.
C) $9 per hour multiplied by total hours of work plus $700.
D) $9 per hour multiplied by total hours of work plus $3,200.
Fixed Costs
Costs that do not vary with the level of output in the short term, such as rent, salaries, and equipment leases.
Sporting Goods
Products and equipment designed for participation in physical fitness and sports activities.
Monthly Electricity
The amount of electric energy consumed or billed over a one-month period.
- Acquire a comprehension of the categories of variable, fixed, and total costs in production scenarios.
- Compute the annual expenditures by analyzing operating times and levels of output.
Verified Answer
NE
Learning Objectives
- Acquire a comprehension of the categories of variable, fixed, and total costs in production scenarios.
- Compute the annual expenditures by analyzing operating times and levels of output.