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John has a dairy farm with 50 cows and an annual production of 250.000 kg milk. His income sheet (simplified) is stated below:
John decides to enlarge his farm. He needs another building for his animals. Which costs will increase due to the investment in the building?
fixed costs
variable costs
Which of the following purchases leads to change in variable costs?
Building
Machinery
Cows
Concentrate
Hay
