Question
Your friend Bob just opened a new restaurant selling burgers. The restaurant seems to be doing well as you always see a lot of traffic,
Your friend Bob just opened a new restaurant selling burgers. The restaurant seems to be doing well as you always see a lot of traffic, but Bob complains that business is bad and hes barely able to make rent on his place. You had suspected that Bobs prices were too low (which could contribute to all that traffic!), so you ask him if hes able to cover production costs with what he is charging per burger. He replies that he knows how much he spends per month on rent, promotion, and payroll but hes never calculated the cost per item. You decide to help him, and start making a list of what he needs to produce each burger: buns, meat, lettuce, onions, tomatoes, pickles, fries, etc. Because all these costs change based on the number of burgers Bob makes, these are called ___________ costs.
Group of answer choices
target
payroll
fixed
variable
capital
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