Fixed cost. The reason is insurance policy is Simon’s obligation so that he has pay for it even if his pizza house produces more or less.
The payment he makes to buy pizza dough
Variable cost. The reason is the amount of money spend for pizza dough is variable and depended on the quantity he produces.
The wages he pays his workers
Fixed cost. The reason is the lease payment was made before he starts to produce products. So, it does not relate to the quantity of the product.
The $300 per month payment he makes to his local newspaper for running his weekly advertisement
Fixed cost. The reason is that it is the additional cost of a marketing campaign that he runs and not related to the quantity of the product.
