Suppose Jan started up a small lemonade stand business last month.Variable costs for Jan's lemonade stand now include the cost of

Question

Quizplus · Accepted Answer

Variable costs are costs that change with the level of production. In this case, the cost of lemonade mix is a variable cost because it is directly related to how much lemonade Jan makes and sells. Building the lemonade stand and hiring an artist to design a logo for her sign are not variable costs because they do not change with the level of production. They are considered fixed costs.

Suppose Jan Started Up a Small Lemonade Stand Business Last