E 1. Indicate whether each of the following costs of productive output is usually

(a) variable or

(b) fixed:

1. Packing materials for stereo components 2. Real estate taxes 3. Gasoline for a delivery truck 4. Property insurance 5. Depreciation expense of buildings (calculated with the straight-line method)

6. Supplies 7. Indirect materials 8. Bottles used to package liquids 9. License fees for company cars 10. Wiring used in radios 11. Machine helper’s wages 12. Wood used in bookcases 13. City operating license 14. Machine depreciation based on machine hours used 15. Machine operator’s hourly wages 16. Cost of required outside inspection of each unit produced Variable Cost Analysis