This means that her variable cost? Vanessa owns a horse ranch. Her total costs are$550,000 per year, and her fixed costs are $205,000 peryear. This means that her variable costs are:A. $345,000.B. $550,000.C. $108,000.D. $205,000.E. $755,000.

Step 1: Formula Total cost = Fixed costs + Variable costsVariable costs = Total cost - Fixed costs…

Answered: Vanessa owns a horse ranch. Her total…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tom borrowed $40,000 from his parents to open a donut stand. He agrees to pay his parents a 5% yearly return on the money they lent him. His other yearly fixed costs equal $10,000. His variable costs equal $25,000. He sold 40,000 dozen donuts during the year at a price of $2.00 per dozen. Tom's total costs equal: O $37,000 O $59,000 O $40,000 O $25,000
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Vanessa owns a horse ranch. Her total costs are $550,000 per year, and her fixed costs are $205,000 per year. This means that her variable costs are: A. $345,000. B. $550,000. C. $108,000. D. $205,000. E. $755,000.