Jane Westerlund Owns a Picture-Framing Shop, the Caplow Co

question 335

Multiple Choice

Jane Westerlund owns a picture-framing shop, The Caplow Co.The average price she receives for a picture she frames for a customer is $120.This price must cover her average costs for a typical framed picture of $5 for glass, $2 for matting, and $13 for the frame, and $30 for the labor involved.She must also cover monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $3,500 for her salary.Westerlund is considering buying an automatic mat-cutting machine in order to reduce the number of hours of direct labor required to produce a framed picture.In considering this purchase, she should recognize this purchase will __________ Caplow's variable cost and __________ Caplow's fixed cost.

• A)decrease; increase
• B)decrease; decrease
• C)increase; decrease
• D)increase; increase
• E)have no effect on; have no effect on

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Definitions:

Genuine Family Partnerships

Authentic and respectful collaborations between families and schools or organizations, aiming to support children's learning and development by recognizing and utilizing the strengths and resources of both parties.

Discretionary Time

Free time available to an individual after fulfilling work, personal, and family obligations.

Fear of Criticism

An apprehension or anxiety experienced by individuals about being judged, evaluated negatively, or receiving negative feedback from others.

Family Access

The ability of family members to reach resources, services, or institutions necessary for their welfare.