Snowie is a brand of flavored shaved ice that is sold in snow cones at a variety of events and locations across the United States. Recently, a Snowie cart was spotted at the Kent Heritage Festival last summer. During this festival, street vendors offer a variety of foods and drinks.

At the Snowie cart, festival goers can purchase a 20-ounce snow cone for $4.00. For the purpose of this hypothetical example, lets assume that the variable cost of each snow cone sold is $1.00. Also assume that the monthly fixed costs for this Snowie snow cone cart total $1,500.

1. If the owner has to hire a worker to attend the kiosk, is the cost of the worker a variable or fixed cost with respect to the number of snow cones sold? Discuss.

2. What other factors should once consider before deciding to start a Snowie business? These factors could be internal or external influences that can affect the business.