Question

Wesson Company sold 10,000 units of its only product in the first half of the year. If sales decrease by 15% in the second half of the year, which cost will not change?

A. Direct materials
B. Direct labor
C. Sales commissions
D. Factory supplies
E. Depreciation on equipment

Answer 1

so here correct option is E Depreciation on equipment

Step-by-step explanation:

given data

no of unit sold = 10000 units

sales decrease = 15%

solution

Depreciation on equipment cost will not change because

Depreciation on equipment is assumed to be fixed in nature

and it is not change with increase or decrease in sales

and all other cost given here is variable in nature and it depend upon sales or an production

so here correct option is E. Depreciation on equipment