Problem

Identifying cost behaviorAt the various activity levels shown, Amborse Company incurred th...

Identifying cost behavior

At the various activity levels shown, Amborse Company incurred the following costs.

 

Units Sold

20

40

60

80

100

a.

Depreciation cost per unit

240.00

120.00

80.00

60.00

48.00

b.

Total rent cost

3,200.00

3,200.00

3,200.00

3,200.00

3,200.00

c.

Total cost of shopping bags

2.00

4.00

6.00

8.00

10.00

d.

Cost per unit of merchandise sold

90.00

90.00

90.00

90.00

90.00

e.

Rental cost per unit of merchandise sold

36.00

18.00

12.00

9.00

7.20

f.

Total phone expense

80.00

100.00

120.00

140.00

160.00

g.

Cost per unit of supplies

1.00

1.00

1.00

1.00

1.00

h.

Total insurance cost

480.00

480.00

480.00

480.00

480.00

i.

Total salary cost

$1,200.00

$1,600.00

$2,000.00

$2,400.00

$2,800.00

J.

Total cost of goods sold

1,800.00

3,600.00

5,400.00

7,200.00

9,000.00

Required

Identify each of these costs as fixed, variable, or mixed.

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