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2. Costs are classified in many different ways, The following are costs that were incurred by Nike, Inc. a. rubber for the sole of the

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2. Costs are classified in many different ways, The following are costs that were incurred by Nike, Inc. a. rubber for the sole of the shoe, $6 per shoe b. rent on the manufacturing facility building, $188,000 annually c. sales manager salary, $127,000 annually d. worker who operates the machine that puts the shoe together, $2 per shoe e. shoe laces, $1.80 per shoe f. worker who puts the shoes in the shoe box, $0.20 per shoe g. insurance on the manufacturing facility, $23,000 annually h. water and utilities, $22,000 per month consistently i. depreciation on manufacturing equipment, $18,000 each month j. already contracted advertising on television, $1,800,000 annually k. sales commission paid to salespeople based on 5 % of sales 1 office supplies, usually approximately $3,000 per month m. paper for the copier in the executive offices, usually about $1,200 per month n. glue used in the shoe, approximately $0.18 per shoe o. company jet lease, $14,000 per month REQUIRED: Indicate which costs are fixed (F) and which are variable (V). 3. Using the same information that is given in problem 2 above, calculate the cost of producing one shoe when production is 100,000 shoes. (Assume this list is all the costs incurred to produce and sell the shoes, even though it is not all the costs a company like Nike would incur.)

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