Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following would be considered a fixed cost for this company?
A. The packaging material
B. The cost of rope
C. Employee wages
D. None of these would be considered a fixed cost.
Answer: D
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A. more; risen B. less; fallen C. less; risen D. more; fallen