Suppose Jan started up a small lemonade stand business last month. Variable costs for Jan's lemonade stand now include the cost of
A)building the lemonade stand.
B)hiring an artist to design a logo for her sign.
C)lemons and sugar.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Variable costs are costs that vary with the level of output. In the case of a lemonade stand, the variable costs would be the cost of the supplies needed to make the lemonade, such as lemons and sugar. Building the stand and hiring an artist to design a logo would be considered fixed costs, as they are costs that do not vary with the level of output. Therefore, the correct choice is C.

Suppose Jan Started Up a Small Lemonade Stand Business Last