Use the following information to answer questions6-9.. At lunchtime, Darlene’s D

Question

Use the following information to answer questions6-9..

At lunchtime, Darlene’s Dawgs sells hot dogs, chips,and soft drinks from portable hot dog carts stationed on busystreet corners. The depreciation cost on the carts is $1,000per year for each cart. The company buys supplies (hot dogs,chips, cups, napkins) as needed. The cart operators are eachpaid $8,000 per year plus 5% of sales revenue.

6.      Thedepreciation cost relative to the number of hot dogssold:

a.        fixed.

b.        variable.

c.        mixed.

d.        strategic.

Explanation / Answer

A. FIxed cost. Depreciation costs are fixed for a company.

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