Question
You sell sandwiches from a food truck. You have two types of inputs: ingredients and wages for a single worker. You buy the necessary ingredients
You sell sandwiches from a food truck. You have two types of inputs: ingredients and wages for a single worker. You buy the necessary ingredients (bread, ham, cheese, etc.) from the supermarket every morning. Your ingredient cost is $150 for 100 sandwiches, or $250 for 200 sandwiches. You sign a daily 6-hour contract with the worker, and pay him $120 at the end of each day, regardless of how many sandwiches were made and sold. Which input constitutes your variable cost?
Ingredients for the sandwiches.
Wages for the worker.
Ingredients for the sandwiches and wages for the worker.
You have no variable cost, since none of the inputs can be adjusted once you have chosen how many sandwiches to produce.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started