Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Java Joe operates a chain of coffee shops. The company pays rent of $20,000 per year for each shop. Supplies (napkins, bags and condiments) are

Java Joe operates a chain of coffee shops. The company pays rent of $20,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The manager of each shop is paid a salary of $3,000 per month, and all other employees are paid on an hourly basis. Relative to the number of customers for a shop, the cost of supplies is which kind of cost?

Fixed cost

variable cost

Mixed Cost

Relevant Cost


Step by Step Solution

3.36 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

Option 2 is correct Variable cost Rent salary ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Karen W. Braun, Wendy M. Tietz

5th edition

134128524, 978-0134128528

More Books

Students also viewed these General Management questions

Question

List and explain the three dimensions of group types.

Answered: 1 week ago

Question

Describe how humanists such as Carl Rogers explain personality.

Answered: 1 week ago