An important distinction is made in the calculation between fixed and variable costs. Fixed costs do not change with the units sold (at least in the short term). Variable costs depend on the units sold in the period.
1. Identify each of the following as a fixed (F) or variable (V) cost in the context of BizCafe.
a. Coffee
b. Advertising
c. Rent
d. Salaries
e. Cups
f. Utilities
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