Lauren, owner and operator of Tastee Burgers, is working on a break-even analysis. The cost of pickles, onions, buns, ketchup, and meat would all be considered variable costs for her type of business.

Question

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Variable costs are those costs that vary with the level of production. As the number of burgers sold increases, the amount of pickles, onions, catsup, buns, and meat Lauren must buy will increase.

Lauren, Owner and Operator of Tastee Burgers, Is Working on a Break-Even