Brandy made and sold decorative floral arrangements. For each arrangement, she purchased a container in which to hold the arrangement, silk flowers, and ribbon, which averaged $30 per arrangement. It took her about one hour to complete each and she set her hourly rate at $20/hour. This makes $50 her ____________________.
a. Variable costs
b. Fixed costs
c. Economies of scale
d. Breakeven
Answer: a. Variable costs