(3).

At lunchtime, Darlenes Dawgs sells hot dogs, chips, and soft drinks from five portable hot dog carts stationed on busy street corners. The depreciation cost on the carts is $1,000 per year for each cart. The company buys supplies (hot dogs, chips, cups, napkins) as needed. The 5 cart operators are each paid $8,000 per year plus 5% of sales revenue.

Relative to the number of hours worked, the total compensation cost for the cart operators is

a) Fixed

b) Variable

c) Mixed

d) Strategic

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The cost of supplies relative to the number of customers served at a particular hot dog cart and relative to the number of customers served by all five of the hot dog carts is, respectively:

a) variable / fixed.

b) fixed / fixed.

c)variable / fixed.

d) variable / variable.