Dr. S. Morgan Chapter 1 MGMT 315: Introduction to Management Science Ponderosa Development Corp. Ponderosa Development Corporation (PDC) is a small real estate developer operation in the Rivertree Valley. It has seven permanent employees whose monthly salaries are given in the table below. PDC leases a building for $2,000 per month. The cost of office supplies, utilities, and leased office equipment runs another $3,000 per month. PDC builds only one style house in the valley. Land for each house costs $55,000 and lumber, supplies, etc. run another $28,000 per house. Total labor costs are figured at $20,000 per house. The one sales representative of PDC is paid a commission of $2,000 on the sale of each house. The selling price of the house is $115,000. Employee President Monthly Salary $10,000 VP, Development $6,000 VP, Marketing $4,500 Project Manager $5,500 Controller $4,000 Office Manager $3,000 Receptionist $2,000 Identify the fixed and variable costs associated with the problem. Denote the fixed and variable cost. FIXED COSTS VARIABLE COSTS