Q7RQ
Question
A chain of convenience stores has one manager per store who is paid a monthly salary. Relative to Store #36 located in Atlanta, Georgia, is the manager’s salary fixed or variable? Why?
Step-by-Step Solution
Verified Answer
The manager’s salary is a fixed cost.
1Fixed Cost:
The cost that is not the function of the any other variable is known as fixed cost, therefore it remain constant.
2Reasoning
The manager’s salary is a fixed cost because the salary of a manager is dependent upon store #36 located in Atlanta.
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