Jodi Recently Went into Business Producing Widgets

Multiple Choice

Jodi recently went into business producing widgets. Which of the following would be a fixed cost for her firm?
1. labour costs are $1000 per month
2. raw material costs are $5000 per month
3. a one- year lease on a building is $12 000

A) 1 only
B) 2 only
C) 3 only
D) 1 and 2
E) 2 and 3