Q8RQ
Question
A chain of convenience stores has one manager per store who is paid a monthly salary. Relative to the number of stores, is the manager’s salary fixed or variable? Why?
Step-by-Step Solution
Verified Answer
The manager’s salary is a variable cost.
1Variable cost
The cost which is function of other variable is known as variable cost
2Reasoning
The manager’s salary is a variable cost because the salary of manager is dependent upon the number of stores. If the number of stores increase or decrease the manager’s salary will also change, therefore manager salary is variable.
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