Question

Choose a real or made up example of a company, and describe at least three variable costs the company has. (1-3 sentences. 1.5 points)

Answer 1

Dominos is a company that has many variable costs. Some examples include flour, cheese, and tomatoes.

Step-by-step explanation:

Answer 2

A company which makes custom-fitted sweaters for cats has three variable costs. The cat sweater designer only does home visits, so for each customer, the designer will have to drive to the house to measure the cat. Each cat’s shape and measurements differ, so the yarn to make their sweaters will vary for each cat. The time spent knitting the sweaters will vary for each cat depending on the style their owner wants and the cat’s size and shape. For this company, the variable costs would be gas, the yarn, and staff wages for how much time each sweater takes.