Lucy started a business called StaffordWelly. It makes boots with a high heel to appeal to women and festival-goers.
Lucy wanted to expand StaffordWelly but needed additional capital. They appeared on the television programme SharkTank.
StaffordWelly has many variable costs when running the business.
Which one of the following is an example of a variable cost?
Select ONE answer:
- Loan repayments
- Salaries
- Insurance
- Raw materials
Show the workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Business Studies KS4 & KS3 classes
The answer is 4 – the other answers would be fixed costs.
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