Harry Hoarder Runs a Small Street Vendor Service Which Contracts

Multiple Choice

Harry Hoarder runs a small street vendor service which contracts to produce and sell moulded plastic souvenirs (key chains, commemorative plastic coins, plastic animals, etc.) at small theatre shows.As owner of the firm, Harry must decide how much of each product to produce.The key element of this decision is:

A) the fixed cost of production
B) the cost of his selling booth
C) how costs will vary as he changes the level of production
D) the cost of book keeping services