Ethan Is an Operations Unit Manager for Morningstar Foods

Multiple Choice

Ethan is an operations unit manager for Morningstar Foods. When developing his monthly budget, he has identified the following costs: Overhead at $120,000; Packaging at $70,000; Advertising at $60,000; Salaries at $400,000; Food production at $90,000, and Distribution at $22,000. The fixed costs in this situation would be:

A) overhead, packaging, advertising, salaries, food production, and distribution
B) overhead, packaging, advertising, salaries, and distribution
C) overhead, advertising, distribution, and salaries
D) packaging and distribution
E) food production