Sonia opened a yoga studio where she teaches classes and sells yoga clothing. Fixed costs for Sonia's yoga studio include the cost of the
(i)tank tops.
(ii)wages paid to the other yoga instructors.
(iii)lease on the studio space.
(iv)insurance that the landlord requires Sonia to carry for the studio.
A)(i) only
B)(i) and (ii) only
C)(iii) and (iv) only
D)(i), (ii), (iii), and (iv)

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the level of goods or services produced. The lease on the studio space and insurance are fixed costs, as they remain constant regardless of the number of classes taught or clothing sold.

Sonia Opened a Yoga Studio Where She Teaches Classes and Sells