1.Cost Classification:

A. Classify each of the costs (a. through j.) below under C. as a variable cost or a fixed cost.

a.Cost of goods sold of $35 per unit

b.Labor = $400/month

One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month.

c.Advertising fees = $3,000

d.Bank fees = $200

e.Phone/internet =$150 per month

f.Shipping = $3 per unit

g.Utilities = $100 per month

h.Office Supplies = $900

i.Conference Exhibitor Fee = $3000

j.Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1200