Marcia Baker Ships Orchids and Other Perishable Flowers from Her

question 69

Multiple Choice

Marcia Baker ships orchids and other perishable flowers from her greenhouses near San Francisco,California to florists thousands of miles away in cities such as New York,Boston,and Philadelphi A.Since the flowers must reach the florists as quickly as possible,the best mode of transportation for Marcia to use would be:

• A)railroads.
• B)trucks.
• C)air.
• D)ships.

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Definitions:

Variable Cost

Costs that vary in direct proportion to changes in levels of production or business activity, such as materials and labor.

Fixed Cost

A cost that does not change with the volume of sales.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and loan payments.

Variable Costs

Costs that vary directly with the level of production or sales, such as materials and labor.