Cost Behavior Assume a local pizzeria reported the following results for October and November November 12,000 Oct Unit Sales 8,000 Cost of Food Sold 160,000 Wages and Salaries Rent Depreciation Utilities Supplies Total 240,000 30,000 30,000 8,000 5,000 3,000 3,000 207,800 289,000 8,000 5,000 2,800 2,000 a. Identify each cost as being fixed, variable or mixed. b. Determine the equation for total operating costs (Fixed + Unit Variable Cost . # of sandwiches) c. Predict the total operating costs for d. Determine the average costs for 14000 pizzas 14000 pizzas Concept question: Why are fixed costs generally not relevant for decision-making? Would average costs be useful for decision-making and why or why not? Concept