• DEF Retail operates a chain of clothing stores. Calculate the direct costs, fixed costs, variable costs, and total operating costs for one store location based on the following data:
  • Cost of goods sold (direct): $100,000 per month
  • Rent (fixed): $15,000 per month per store
  • Sales commissions (variable): 5% of monthly sales revenue
  • Utilities (fixed): $2,000 per month per store
  • Advertising expenses (variable): $1,500 plus 0.5% of monthly sales revenue.