Jerry's ice-cream parlor is hosting Andrew's birthday party in one week.Overall,25 to 30 people will attend the party and Andrew's costs are as follows: $200 for rent,$150 for the cake,$3 per person for customized invitations,$15 per person for the meal,$50 for decorations,and $8 per person for party favors.For simplicity,assume that Andrew is considered one of the guests and he receives an invitation too.Assuming that 25 people attend the party,the fixed cost of the party is:
A) $400
B) $1,050
C) $650
D) $350
E) $250

Question

Quizplus · Accepted Answer

Fixed costs are those that do not change with the number of people attending the party. In this case, the fixed costs are the rent, the cake, the decorations, and the invitations. The rent is $200, the cake is $150, the decorations are $50, and the invitations are $3 per person. Since Andrew is considered one of the guests, we need to add $3 to the cost of the invitations. Therefore, the total fixed cost is $200 + $150 + $50 + $3 = $400.

Jerry's Ice-Cream Parlor Is Hosting Andrew's Birthday Party in One