Final Answer:
The relationship between the number of cars Marcel fixes and the mechanics he hires is indirect. The lease cost for the garage remains constant at $800 weekly, irrespective of the number of cars fixed. The decision to hire mechanics is influenced by the volume of work, but the lease cost itself is not directly tied to the number of cars repaired.
Step-by-step explanation:
In this scenario, the lease cost for the garage is a fixed expense of $800 per week. This fixed cost remains constant regardless of the number of cars Marcel fixes. The relationship between the number of cars fixed and the mechanics hired is indirect because while the decision to hire mechanics may be influenced by the workload (i.e., the number of cars to be fixed), the fixed lease cost does not change based on the volume of work.
Marcel may choose to hire additional mechanics if the demand for his services increases, allowing him to handle a higher number of cars efficiently. However, the fixed lease cost for the garage is independent of this decision. The fixed nature of the lease cost provides stability in budgeting and financial planning, as Marcel knows that the lease expense remains constant, allowing him to make decisions about hiring mechanics based on operational needs and efficiency rather than the lease cost.
Understanding the fixed and variable components of business expenses is crucial for effective financial management. In this case, the fixed lease cost creates a baseline for Marcel's weekly expenses, while the decision to hire mechanics is influenced by the dynamics of his workload and business growth.