The Palasi Candy Company Is a Small Business Located in the Northeastern

question 63

Multiple Choice

The Palasi Candy Company is a small business located in the northeastern United States. The owner of Palasi Candy is calculating the projected costs for the coming year. There is rent for the building; salaries for the retail employees; raw materials of sugar, chocolate, and other ingredients; wrappers for packaging of individual pieces of candy; boxes; and radio advertising. Palasi's ______ are most likely to be the raw materials of sugar, chocolate, and other ingredients, as well as the wrappers.

• A) sunk costs
• B) variable costs
• C) direct costs
• D) fixed costs
• E) marginal costs

---

Definitions:

Welfare System

A government program designed to support individuals and families in need through financial aid, healthcare, and social services.

Benefits

Advantages or gains provided by a product, service, or activity to an individual, group, or society.

Wage Rate

The amount of compensation received by an employee per unit of time or output, often specified per hour or piece.

Immigration

The act of moving to a foreign country to live permanently, often influenced by factors like employment, family reunion, or asylum.