Answer:
D. Variable Cost
Step-by-step explanation:
Variable and Fixed Costs
A variable cost represents a cost that changes in proportion to the change in the quantity of goods that a business produces or the services the business renders. The two costs that are usually considered normal in a business are the fixed cost (which are costs incurred irrespective of the changes in quantity of goods and services produced or rendered) and the variable cost.
For Jamara,
- $500 a year for Representative Fee is a fixed cost that is incurred whether Jamara gets participants for each sign or not
- $10 is basically incurred on metal base, the paints, brushes, stencils and transfers only when Jamara gets a participant. In order words, these items will only be incurred and increase only in proportion to the increase in the number of signs Jamara gets the order to make. This $10 is, therefore, a variable cost.