At the 120seat Riverside Restaurant, total variable costs for September were $12,000. For October, the manager expects to sell 10 percent more meals than in September. If the increase in sales volume occurs, the manager should expect the total fixed costs for October to be:

Question

At the 120­seat Riverside Restaurant, total variable costs for September were $12,000. For October, the manager expects to sell 10 percent more meals than in September. If the increase in sales volume occurs, the manager should expect the total fixed costs for October to be:

Quizplus · Accepted Answer

Fixed costs do not vary with changes in sales volume, so the increase in meals sold will not have an impact on fixed costs. Therefore, the total fixed costs for October should be relatively the same as in September.

At the 120­seat Riverside Restaurant, Total Variable Costs for September

At the 120seat Riverside Restaurant, Total Variable Costs for September