Maddie Noticed That Many Students on Campus Had T-Shirts and Sweatshirts

question 105

Multiple Choice

Maddie noticed that many students on campus had t-shirts and sweatshirts with Greek organization letters or club names on them. Recognizing that there was a huge market for this attire, Maddie rented a store front and a silk screening machine to get into the t-shirt business. Maddie's rent is $1,000 a month, including utilities. The silk screen machine leases for $300 a month. Maddie can buy blank t-shirts for $6 each and sweatshirts for $10 each. Maddie calculated the cost of materials for the silk screening at $2 per unit. For pricing decisions, Maddie should consider her $1,000 rent as a:

• A) fixed cost.
• B) variable cost.
• C) semi-variable cost.
• D) loss.

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Definitions:

Inclusive Range

The difference between the highest and lowest values in a data set, taking into account both extreme values.

Scores

Quantitative values assigned to individuals or objects for the purpose of comparison or measurement.

Variance

A measure of the dispersion of a set of data points, calculated as the average squared deviation from the mean of the data.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the data points are.