Carla Sells Hot Coffee, Cider and Tea from a Sidewalk

question 5

Multiple Choice

Carla sells hot coffee, cider and tea from a sidewalk cart near Wall Street in New York City. Last month she sold $4,500 worth of product to 1,000 customers. She spent $800 on buying her beverages in bulk. Her monthly costs are: Utilities = $100, Salary = $2,000, Advertising = $0, Insurance = $0, Interest = $0, Rent (cart) = $600, Depreciation = $0. What are Carla's fixed costs?

• A) $3,000
• B) $2,700
• C) $2,000
• D) $3,500

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Definitions:

Dermatome

A specific area of skin that is innervated by sensory fibers from a single spinal nerve root.

Grafting

A horticultural technique whereby tissues from one plant are inserted into those of another so that the two sets of vascular tissues may join together, also used in surgery for transplanting skin or other tissues.

Sudoriferous Glands

Glands located in the dermis layer of the skin, responsible for producing and secreting sweat.

Perspiration

The process of sweating, where the body releases fluid through the sweat glands as a means of cooling down.