Exercise 2-1 Your answer is partially correct. Try again Macon witamins se s a v

Question

Exercise 2-1 Your answer is partially correct. Try again Macon witamins se s a vanet cf vitamins and er al supp er ents to small hea h ood stores. Macon purchases e w am nand supplements om leading manufacturers. Identity each o the o owlng costs na red by Macon tamins n terms o Its cost be encr vanable fixed mixed or step. e, vitarnin C tablets b President's selary c. Sales commissions (1.00 par case) d. Stralgh linc dapraclation on otfice equipment . Shipping (billed in 100-pound increments) Adverisin g. Telephone charges (manthly tee o35 plus leng distanoe chames)tep

Explanation / Answer

1 a Variable b Fixed c Variable d Fixed e Step f Fixed g Mixed 2 a Variable b Fixed c Step d Mixed e Variable f Fixed g Mixed i Variable j Variable k Fixed 3 a Total cost for 300 returns = 500+(300*10)= 3500 Total cost for 400 returns = 500+(400*10)= 4500 Total cost for 500 returns = 500+(500*10)= 5500 b Cost per unit(300) = 3500/300= 11.67 Cost per unit(400) = 4500/400= 11.25 Cost per unit(500) = 5500/500= 11.00

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