Southern Food Service operates six restaurants in the Atlanta area. The company pays rent of $20,000 per year for each shop. The managers of each shop are paid a salary of $4,200 per month and all other employees are paid on an hourly basis. Relative to the number of hours worked, total compensation cost for a particular shop is which kind of cost, respectively?
A. Variable cost/fixed cost
B. Fixed cost/fixed cost
C. Fixed cost/variable cost
D. Variable cost/variable cost
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