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Classify each of the firm's costs as fixed, variable, or semi-variable. Consider how they would change for both one and two stands selling. Be prepared

  1. Classify each of the firm's costs as fixed, variable, or semi-variable. Consider how they would change for both one and two stands selling. Be prepared to explain why your classified each cost the way you did. Also, discuss what the relevant range is for determining the behavior of these costs and whether it would change if you opened a second stand.
  2. Would the full unit costs of ice cream cones and bars change if the stand sold less units? Why or why not?

Cost

Fixed/Variable/Semi-Variable

Raw materials (Ice cream, cones, and bars)

Utilities

Labor

Depreciation on stand and equipment

Accounting and promotion

Business license

Miscellaneous

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