Alicia runs a bakery. Her total annual costs are $420,000, and her fixed costs are $160,000 per year. This means that her variable costs are: Options: a. $200,000 b. $420,000 c. $260,000 d. $580,000 e. $160,000

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
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Alicia runs a bakery. Her total annual costs are $420,000, and her fixed costs are
$160,000 per year.
This means that her variable costs are:
Options:
a. $200,000
b. $420,000
c. $260,000
d. $580,000
e. $160,000
Transcribed Image Text:Alicia runs a bakery. Her total annual costs are $420,000, and her fixed costs are $160,000 per year. This means that her variable costs are: Options: a. $200,000 b. $420,000 c. $260,000 d. $580,000 e. $160,000
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