20. For Stone Hill Bottling Company, the salespersons' commissions are an example of:

a. a variable cost.

b. a fixed cost.

c. a mixed cost.

d. none of these

19. Lucy Treasures operates a chain of gift shops. The company pays $5,000 of rent expense per month for each shop. The managers of each shop are paid a salary of $3,000 per month and all other employees are paid on an hourly basis. Relative to the number of shops, the cost of rent is which kind of cost?

a. Fixed cost

b. Variable cost

c. Mixed cost

d. Opportunity cost

18. What is the formula for calculating contribution margin ratio?

a. Contribution margin/net income

b. Contribution margin/sales

c. Contribution margin/desired profit

d. Contribution margin/fixed costs

17. A cost that contains both fixed and variable elements is referred to as a:

a. hybrid cost.

b. mixed cost.

c. relevant cost.

d. semi cost.