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Beamers sells a variety of hot and cold coffee beverages. Data for a recent month appears below: Revenue $25,000 Costs: Ingredients $8.200 Miscellaneous supplies (napkins,

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Beamers sells a variety of hot and cold coffee beverages. Data for a recent month appears below: Revenue $25,000 Costs: Ingredients $8.200 Miscellaneous supplies (napkins, etc.) 1,300 Rent 1,200 Wages for part time employees 3,500 Cart attendant salary 6.500 Total costs 20.700 Profit $-4.300 Part-time employees are scheduled for busy times, but are sent home as soon as volumes drop enough to warrant it. a) Categorize each cost as fixed or variable and explain your choice. b) Create a cost function. Discuss three reasons why the cost friction you estimated in part (b) might provide an inaccurate estimate for next month's costs. 1 F T: B T 3

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