A distributor of bakery suppliers sells 5-pound bags of moist apricots and cranberries,sweet dates,bits of pineapple,and candied cherries for $24.95 to be used in fruitcakes.Since the amount of cranberries purchased depends on how many bags of fruit are demanded,the cost of the cranberries is a:
A) variable cost
B) marginal contributor
C) fixed cost
D) variable revenue
E) joint cost

Question

Quizplus · Accepted Answer

The cost of the cranberries varies based on the demand for the 5-pound bags of fruit, therefore it is a variable cost.

A Distributor of Bakery Suppliers Sells 5-Pound Bags of Moist