A bakery supply catalogue sells 5-kg bags of moist apricots and cranberries,sweet dates,bits of pineapple,and candied cherries to be used in fruitcakes.Each bag costs $24.95.If the price of cranberries were to increase by 5 percent,it would have no effect on the price of the fruit mix because cranberries are only one of several fruits in the package.
-Refer to Fruitcake.Since the amount of cranberries purchased depends on how many bags of fruit are demanded,what is the cost of the cranberries?

Question

Quizplus · Accepted Answer

The cost of the cranberries is a variable cost because it depends on the number of bags of fruit demanded. If more bags of fruit are demanded, then more cranberries will be purchased, increasing the cost. Likewise, if fewer bags of fruit are demanded, then fewer cranberries will be purchased, decreasing the cost.

A Bakery Supply Catalogue Sells 5-Kg Bags of Moist Apricots