When Pepsi sells 1,000 cases of Pepsi,their cost per case is $0.30.However,when they sell 2,000 cases,their cost per case is $0.22.These costs are considered Pepsi's:
A)fixed costs.
B)variable costs.
C)marginal costs.
D)administrative costs.

Question

Quizplus · Accepted Answer

Variable costs change with the level of production or sales volume, as seen in the decrease in cost per case when more cases are sold.

When Pepsi Sells 1,000 Cases of Pepsi,their Cost Per Case