Question

8. Shelby owns a small gift shop in a tourist town in Devon. She has the following costs in the

month of May.
Rent £2,225
Wages £800
Salaries £1,500
Stock purchase £950
Calculate her total fixed costs. (don't forget to include £ sign. You do not need to write pence in
your answer​

Answer 1

£3,725

Step-by-step explanation:

Fixed costs do not change throughout a financial period. They remain constant regardless of the level business output. A business must incur fixed costs as long as it remains open.

From the list provided, fixed costs are

• Rent £2,225
• Salaries £,1,500

Total fixed costs will be £2,225 +£,1,500

= £3,725