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QUESTION 3 At lunchtime, Darlene's Dawgs sells hot dogs, chips, and soft drinks from five portable hot dog carts stationed on busy street corners. The
QUESTION 3 At lunchtime, Darlene's 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 art. 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 customers served, the total compensation cost for the cart operators is: a. variable. b. strategic. C. mixed d. fixed. QUESTION 7 Which of the following statements regarding the contribution approach and the traditional approach is correct a. The contribution income statement provides a gross margin. b. The traditional income statement provides a contribution margin. o C. Both statement A and statement B are true. d. Neither statement A nor statement B is true
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