Lauren owns a bakery. Her total costs are $150,000 per year, and her variable costs are $85,000. This means that her fixed costs are:

Question

Quizplus · Accepted Answer

Fixed costs are the costs that do not change with the level of production. In this case, the total costs are $150,000 per year and the variable costs are $85,000 per year. Therefore, the fixed costs can be calculated by subtracting the variable costs from the total costs: $150,000 - $85,000 = $65,000. Therefore, the answer is A) $65,000.

Lauren Owns a Bakery