Juan owns an antique shop.His total costs are $1.2 million per year,and his fixed costs are $450,000 per year.This means that his variable costs are

Question

Quizplus · Accepted Answer

Variable costs are the costs that change with the level of production or sales, while fixed costs remain constant. In this case, Juan's fixed costs are $450,000 per year, which means that his variable costs are the remainder of his total costs: $1.2 million - $450,000 = $750,000 per year. Therefore, the correct choice is B.

Juan Owns an Antique Shop