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Gypsy Joe’s operates a chain of coffee shops. The company pays rent of $10,000 per year for each shop. Supplies (napkins, bags, and condiments) are purchased as needed. The mangers of each shop are paid a salary of $2,500 per month and all other employees are paid on an hourly basis. The costs of supplies relative to the number of customers in a particular shop and relative to the number of customers in the entire chain of shops is which kind of cost, respectively?
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With the data provided, I’m trying to figure out what category of cost the problem above would best fall under.
Variable cost/fixed cost, Fixed cost/fixed cost, variable costs/fixed costs, or variable costs/variable costs.
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Gypsy Joe’s operates a chain of coffee shops. The company pays rent of $10,000 per year for each shop. Supplies (napkins, bags, and condiments) are purchased as needed. The mangers of each shop are paid a salary of $2,500 …
