4) Determine which costs are fixed or variable in relation to production and sales of Wildwood guitars. Fixed Variable Guitar strings Wood to build guitar bodies Stain and Lacquer to finish guitars Factory property taxes Supervisor's salary of $8,000 per month Factory insurance Sales commissions (8% of sales) Lease on administrative building Annual accounting software cost Janitor's wages to clean bathrooms Guitar assembly workers Marketing VP salary Electricity to power factory machines Electricity to power building ceiling lights Monthly magazine advertisements Famous guitar-player sponsorship Guitar pick-ups and electronics Hinges for guitar cases