Don Rameriz operates a pizza shop near a major university. During critical periods, like registration and final exams, he is open 24 hours a day. Half of his business is takeout. He has these expenses:
(a) Cost of dough used in pizzas.
(b) Salary of the supervisor of the overnight shift when needed.
(c) Wages of the delivery persons.
(d) Straight-line depreciation on equipment.
(e) Power costs to operate the ovens.
(f) Monthly lease partially based on sales.
(g) Cost of drinks served.
(h) Insurance premiums covering his equipment.
(i) Equipment maintenance costs.
(j) Cost of supplies G.e., napkins, toothpicks, and pizza boxes).
Required:
Classify each cost as variable, fixed, semivariable, or semifixed costs. Add any
assumptions or comments you need to clarify your answers.