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 hot dogs sold, the depreciation cost is:

a) Fixed

b) Variable

c) Mixed

d) Strategic

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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 hot dog carts, the depreciation cost is:

a) Fixed

b) Variable

c) Mixed

d) Strategic