Fixed and Variable Costs

A ___ cost changes as the quantity of of goods produced changes.

• Fixed Cost

• Variable Cost

A ___ remains unchanged even when the number of goods produced changes.

• Fixed Cost

• Variable Cost

Span has 10 workers. Each worker is paid $5,000.00 every month. Workers wages/salary is an example of a ___.

• Fixed Cost

• Variable Cost

Chris has 3 trucks. It costs her $1 for fuel for each kilometer (km) a truck covers. In May the trucks covered a total of 12 000 km and in June the trucks covered a total of 18 000 km. This is an example of a ___.

• Fixed Cost

• Variable Cost

Materials used to produce goods are an example of ___.

• Fixed Costs

• Variable Costs

Nicole has rented a building to setup her factory. Rent is an example of a ___.

• Fixed Cost

• Variable Cost

Total Revenue = $50,000

Total Cost = $35,000

Which statement is correct?

• The business made a loss of $15,000.

• The business made a profit of $15,000.

• The business made a profit of $85,000.

• The business made a loss of $85,000.

A ___ is made when total revenue is greater than total cost.

• Profit

• Loss

• Fixed Cost

• Variable Cost

A ___ is made when total revenue is less than total cost.

• Profit

• Loss

• Fixed Cost

• Variable Cost

A business that wishes to make a profit will strive to ___ revenue and ___ costs.

• minimise, maximise

• minimise, minimise

• maximise, maximise

• maximise, minimise