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identify the following as fixed or variable cost for ken & larry's ice cream company Advertising...

identify the following as fixed or variable cost for ken & larry's ice cream company

Advertising

Milk for making ice cream

Research and development for new flavors

Chocolate and other flavorings

Electricity

office space

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Answer #1

Fixed costs:

  • Office space
  • Advertising
  • Research and development for new flavors

Variable costs:

  • Milk for making ice cream
  • Chocolate and other flavorings
  • Electricity

Explanation:

Fixed costs are the costs which do not vary with the level of output. Variable costs are the costs which vary with the level of output.

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