Vanessa owns a horse ranch.Her total costs are $550,000 per year,and her fixed costs are $205,000 per year.This means that her variable costs are

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Fixed costs are expenses that do not vary with the amount of production, in this case, the number of horses. Therefore, the variable costs are the difference between the total costs and the fixed costs. 
Variable costs = Total costs - Fixed costs 
Variable costs = $550,000 - $205,000 = $345,000.

Vanessa Owns a Horse Ranch