Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following would be considered a fixed cost for this company? Question 2 options: a Employee wages b The cost of rope c The packaging material d None of these would be considered a fixed cost.
Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following would be considered a fixed cost for this company? Question 2 options: a Employee wages b The cost of rope c The packaging material d None of these would be considered a fixed cost.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Question
Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following would be considered a fixed cost for this company?
Question 2 options:
|
a
|
Employee wages
|
|
b
|
The cost of rope
|
|
c
|
The packaging material
|
|
d
|
None of these would be considered a fixed cost.
|
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