Question

What would happen if your boss at the bookstore asked you to decrease some of the business' variable costs

Answer 1

Answer: d.You would find less expensive designer for the store’s advertising posters.

Explanation:

Going by the options give, the best option would be D. This is because option A talks about location which is a fixed cost while b talks about the business insurance policy which is also a fixed cost. Option C is about the internet service provider which is also another fixed cost.

Option D however is not a fixed cost as it relates to advertising. Advertising is a variable cost and so in obeying the directive from the boss, this is the cost that would need to be reduced by finding a less expensive designer.