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Economic help please?


Workers at Helpful Homework, Inc. write supplementary problem sets for students who need help outside of school. The rent for the office is $1,200 per month. Utilities such as electricity and water cost $600 per month. Finally, providing snacks and drinks in the kitchen cost $100 a month. Use the available data and the table below to answer the following questions.

A Helpful Homework employee complains that there are simply not enough snacks and drinks in the kitchen. The manager generously doubles the amount of money spent on snacks and drinks. How does this change Helpful Homework's costs if the company does not produce any problem sets this month?


I. Total cost increases by exactly $100.

II. Total cost increases by exactly $200.

III. Total cost stays the same.

IV. Fixed cost increases by exactly $100.

V. Variable cost increases by exactly $100.


A. II only

B. I and IV

C. III only

D. I and III

Answers B

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