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Author Question: Alicia spends $20,000 on remodeling a storefront that she then opens as a flower shop. Her business ... (Read 124 times)

mcmcdaniel

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Alicia spends $20,000 on remodeling a storefront that she then opens as a flower shop. Her business has not been very successful, and she needs an additional $8,000 to keep the flower shop. Which of the following is 
true?


◦ The $20,000 Alicia spent on remodeling represents a part of the total variable cost of her business.
◦ The $8,000 represents her marginal costs of production.
◦ The $20,000 Alicia spent on remodeling is a fixed cost of her business.
◦ The $8,000 Alicia needs to keep the flower shop open represents her total fixed costs.


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Marked as best answer by mcmcdaniel on Apr 19, 2019

swimkari

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mcmcdaniel

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review


tanna.moeller

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Reply 3 on: Yesterday
Gracias!

 

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