Simplify. -

question 108

Multiple Choice

Simplify.
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Definitions:

Fixed Costs

Fixed costs are business expenses that do not change with the level of output or sales, such as rent or salaries.

Variable Costs

Costs that vary directly with the level of production or service activity within a business.

Net Income

The total amount of profit left over after all operating expenses, taxes, and interest have been deducted from total revenue.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced, including materials, labor, and energy costs.