Solved

Suppose Bev's Bags Makes Large and Small Handbags

Question 49

Multiple Choice

Suppose Bev's Bags makes large and small handbags. Bev rents an industrial space where she keeps the company's fabric, industrial sewing machine, measuring board, cutting shears, extra needles, thread, buttons, and labels. Bev can produce three bags an hour, regardless of the size of the bag. If Bev produces no bags, which of the following is true regarding Bev's costs?


A) The variable cost of fabric would drop to zero.
B) The fixed cost of thread would stay the same.
C) The variable cost of cutting shears would drop to zero.
D) All of these are correct.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents