Essay
The following is a list of various costs of producing sweatshirts.Classify each cost as either a variable, fixed, or mixed cost for units produced and sold.
(a)Electricity costs of $0.025 per kilowatt-hour
(b)Warehouse rent of $6,000 per month plus $0.50 per square foot of storage used
(c)Thread
(d)Zip used in sweatshirts
(e)Janitorial costs of $2,000 per month
(f)Advertising costs of $10,000 per month
(g)Plant manager salary
(h)Color dyes for producing different colors of sweatshirts
(i)Salary of the production supervisor
(j)Straight-line depreciation on sewing machines
(k)Patterns for different designs.Patterns typically last many years before being replaced
(l)Maintenance costs for the company's sewing machine.The cost is $2,000 per year plus $0.001 for each machine hour of use
(m)Property taxes on factory, building, and equipment
(n)Cotton and polyester cloth
(o)Hourly wages of sewing machine operators
Correct Answer:

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(a)variable
(b)mixed
(c)variab...View Answer
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Correct Answer:
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(b)mixed
(c)variab...
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