Table 13-14
The following table presents cost and revenue information for Bob's bakery production and sales.

-Refer to Table 13-14.What is Bob's total fixed cost?

Question

Table 13-14
The following table presents cost and revenue information for Bob's bakery production and sales.
 
-Refer to Table 13-14.What is Bob's total fixed cost?

Quizplus · Accepted Answer

Fixed costs are the costs that do not vary with the level of production, so they are the same regardless of the quantity produced. In this table, the only fixed cost listed is the rent of $5. Therefore, the total fixed cost for Bob's bakery is $5.

Additional information is needed to determine the best choice(s). The table only presents cost and revenue information and does not provide any context or goals for the bakery. Depending on the objective of the bakery, different choices could be optimal.

Table 13-14 The Following Table Presents Cost and Revenue Information for Bob's