Cool Runnings Operates a Chain of Frozen Yogurt Shops

question 76

Multiple Choice

Cool Runnings operates a chain of frozen yogurt shops.The company pays $5,000 of rent expense per month for each shop.The managers of each shop are paid a salary of $3,000 per month and all other employees are paid on an hourly basis.Relative to the number of shops,the cost of rent is which kind of cost?

• A) Variable cost
• B) Fixed cost
• C) Mixed cost
• D) Opportunity cost

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Definitions:

Type A Behaviour

A personality trait characterized by high levels of competitiveness, urgency, aggression, and an extreme commitment to work.

Cardiovascular System

The system of the body comprising the heart and blood vessels, responsible for circulating blood and transporting nutrients and oxygen to cells.

Catecholamines

Organic compounds that include neurotransmitters such as dopamine, norepinephrine, and epinephrine, playing a critical role in the body's stress response and emotional regulation.

Stress Reactivity Paradigm

A viewpoint that sees the reaction to stress as important to an understanding of cardiovascular disease.