Question

Classify each of the following costs as either variable, fixed, or mixed. costs are from a manufacturer of portable basketball hoops.

A) Factory supervisor salary, $6,000 per month
B) Utilities $60 per month plus $0.07 per unit produced
C) Assembly worker hourly wages
D) Factory equipement depreciation, $4,000 per month.
E) Salesperson pay. $4,000 per month plus 5% of dollar sales

Answer 1

Costs can be classified as fixed, variable, or mixed. Costs in a manufacturer of portable basketball hoops include factory supervisor salary, utilities, assembly worker wages, factory equipment depreciation, and salesperson pay. Each cost has different characteristics that determine its classification.

Step-by-step explanation:

The costs can be classified as follows:

A) Factory supervisor salary: Fixed cost

B) Utilities: Mixed cost (fixed cost for $60 per month and variable cost of $0.07 per unit produced)

C) Assembly worker hourly wages: Variable cost

D) Factory equipment depreciation: Fixed cost

E) Salesperson pay: Mixed cost (fixed cost of $4,000 per month and variable cost of 5% of dollar sales)