1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kati45 [8]
4 years ago
11

Sonia opened a yoga studio where she teaches classes and sells yoga clothing. Variable costs for Sonia's yoga studio include the

cost of the
(i) tank tops.
(ii) wages paid to the other yoga instructors.
(iii) lease on the studio space.
(iv) insurance that the landlord requires Sonia to carry for the studio.
Business
1 answer:
shusha [124]4 years ago
6 0

Answer:

tank tops, and to some extent, wages paid to the other yoga instructors

Explanation:

Variable costs are costs that change as the level of activity in a business or production set-up changes. They differ from fixed costs which remain constant irrespective of the change in the level of activity.

For Sonia's yoga studio, variable costs will change as the number of students taking the yoga classes and those buying yoga clothing change. Accordingly, the identified costs for Sonia will react as follows to the change in the level of activity (number of customers and students).

  • The cost of tank tops: as customers buying yoga clothing increases, the cost spent on tank tops will necessarily increase.
  • Wages paid to the other yoga instructors: as more students enroll for yoga classes, Sonia, may increase the number of students in each class to an extent. However, if the number of students continue to increase beyond the limit for each class, Sonia may need to increase the number of classes and employ more instructors (or increase the number of hours for the current instructors), thus leading to an increase in wages. Thus, wages, though fixed in the short term, becomes variable when activity increases significantly.
  • Lease on the studio space: lease will remain fixed since the space occupied as the yoga studio is the same.
  • Insurance on the studio: the insurance cost on the studio will equally remain fixed since it will be a percentage of the value of the studio.

Therefore, the cost of the tank tops and the wages paid to the other yoga instructors (to some extent) are variable costs.

You might be interested in
Judy and Amy are having lunch together and decide to split the bill equally. Amy ordered more expensive items than she normally
salantis [7]

Considering the scenerio about Judy and Amy are having lunch together and decide to split the bill equally. In this case, Amy is less price sensitive when sharing the cost.

What is price sensitivity?

Price sensitivity can be regarded as the degree to which demand changes as result if the changes in cost of a product or service changes.

It should be noted that Price sensitivity helps in measuring price elasticity of demand.

  • And this rule implies that some consumers will refuse to pay more incase there there us availability of lower-priced option.

Learn more at price sensitivity at:

brainly.com/question/14094175

3 0
3 years ago
A rational person does not act unless a. the action makes money for the person. b. the action is ethical. c. the action produces
Natali [406]

Answer:

d. the action produces marginal benefits that exceed marginal costs.

Explanation:

The rational person is the person who takes the decision with keeping in mind about its future events and in practicable in nature instead of the emotional nature

When a company earns a net income, its revenue is more than its cost

So a rational person does not act unless when the action generates the marginal benefits that are exceeded from the marginal cost.

3 0
3 years ago
Holding all other forces constant, when the price of gasoline rises, the number of gallons of gasoline demanded would fall subst
Bezzdna [24]

Answer:

a. buyers tend to be much less sensitive to a change in pricewhen given more time to react.

Explanation:

The options to this question wasn't provided. The full question can be found here: https://www.chegg.com/homework-help/questions-and-answers/32-holding-forces-constant-price-ofgasoline-rises-number-gallons-gasoline-demanded-wouldfa-q532985

Here are the options to the question:

a. buyers tend to be much less sensitive to a change in pricewhen given more time to react.

b. buyers tend to be much more sensitive to a change in pricewhen given more time to react.

c. buyers will have substantially more income over a ten-yearperiod.

d. the quantity supplied of gasoline increases very little inresponse to an increase in the price of 

The demand for a good is usually inelastic in the short run considering the time consumers would take to search for an alternative.

When the price of gasoline rises, it is expected that quantity demanded falls but the fall in quantity demanded might take place over a period of time because it would take time for consumers to find suitable alternatives to gasoline.

I hope my answer helps you

7 0
4 years ago
When calculating the effective rate of a loan, which statement or statements must be true if n is greater than 1? I. The length
solniwko [45]

When the individual calculates the effective rate of the loan, the most appropriate statement is the effective rate will exceed the nominal rate.

<h3>What is effective annual rate?</h3>

The effective annual rate (EAR) is the interest rate for the entire year. Interest Charges Interest expense is incurred when a corporation funds itself with debt or capital leases.

Interest appears on the income statement, but it can also be earned on an investment or paid on a loan as a result of compounding interest over time.

It is usually higher than the marginal rate and is used to evaluate different financial products with varying compounding periods - weekly, monthly, yearly, and so on.

When the number of compounding periods is increased, the effective yearly interest rate rises over time.

Therefore, the correct option is A.

Learn more about the effective rates of the loans here:

brainly.com/question/2405320

8 0
3 years ago
Read 2 more answers
What is one strategy that can help a person avoid spending too much money
VARVARA [1.3K]

Answer:

Concept: Business

  1. Choosing a credit card with a low minimum monthly payment will lead to less spending
4 0
3 years ago
Read 2 more answers
Other questions:
  • Which employees typically work in an office environment within schools? Check all that apply.
    9·2 answers
  • If a firm hires one worker and eliminates four units of capital, and hires one more worker and replaces three more units of capi
    14·1 answer
  • announced today that it will begin paying annual dividends next year. The first dividend will be $0.10 a share. The following di
    11·1 answer
  • CopperCore Inc., a U.S. business, took a 31 percent equity interest in Javier Holdings, a family business based in Spain. Accord
    10·1 answer
  • Labor and business have clashed over the years. the most extreme of these clashes are examples of ____________. the dialectic me
    8·1 answer
  • According to​ Lawler, firms will get the greatest motivational impact from awards programs if they adhere to all of the followin
    10·1 answer
  • Indicate whether each of the following descriptions represents saving or investment, as defined by a macroeconomist. Description
    14·1 answer
  • David, a ten-year-old, purchased a plastic snow sled from Qmart. He went sledding, lost control, hit a tree, and was injured. Da
    9·1 answer
  • Joe Chin bought a house for $180,000. He made a 20% down payment. Joe secured a loan for the balance of the purchase price at 6.
    11·1 answer
  • If a firm has a cost of equity of 15 percent, and the firm is 100 percent equity financed. The firm is contemplating a $150 mill
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!