Question: 1 . Describe the difference between fixed and variable costs. Give an example of a 2 variable costs for a bakery that bakes loaves of

1. Describe the difference between fixed and variable costs. Give an example of a 2 variable costs for a bakery that bakes loaves of bread that sells to retail stores.
2. Which cost is usually the higher of the two; fixed or variable? Justify your answer with reasoning.
3. If sales increase for both companies, which company will realize the greatest increase to profits?

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