{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T05:44:53-04:00", "answer_date": "2024-06-28 05:44:53", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4249058", "url": "\/study-help\/questions\/fixed-variable-or-mixed-an-understanding-of-cost-concepts-is-4249058", "question_creation_date_js": "2024-06-28T05:44:53-04:00", "question_creation_date": "Jun 28, 2024 05:44 AM", "meta_title": "[Solved] Fixed, variable, or mixed? An understandi | SolutionInn", "meta_description": "Answer of - Fixed, variable, or mixed? An understanding of cost concepts is certainly necessary in the business world, but it also | SolutionInn", "meta_keywords": "fixed,variable,mixed,understanding,cost,concepts,necessary,business,world,valuable,personal,finances", "question_title_h1": "Fixed, variable, or mixed? An understanding of cost concepts is certainly necessary in the business world, but it also is very valuable when considering your", "question_title": "Fixed, variable, or mixed? An understanding of cost concepts is certainly necessary", "question_title_for_js_snippet": "Fixed, variable, or mixed An understanding of cost concepts is certainly necessary in the business world, but it also is very valuable when considering your own personal finances Think about costs that you or your parents pay while you are attending OSU Identify at least 5 routine cost examples (associated with you personally) Examples include rent, utilities, groceries, clothing, cell phone, car expenses (other than gas), gas, and entertainment Then, indicate whether each cost is (a) fixed, (b) variable, or (c) mixed (place an X in the appropriate column) Note that cost classification may vary across your group members For example, if you rent an apartment with utilities included, both your rent and utilities costs are fixed However, if you rent an apartment and pay the City of Stillwater for your water and electric costs, your rent may be fixed, but your utilities are mixed That's because you must pay the city a minimum fee plus an additional charge per gallon of water and kilowatt hour of electricity used Expense Approximate cost per month Fixed Variable Mixed 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ Relative to variable costs, do fixed costs present different personal financial risks Explain Semester Case My Assistant As you know from your pre class work, this semester we'll be completing tasks related to the business ventures of entrepreneur W T Anderson Building on the work you did before class, let's help W T sort out the cost environment for his new business, My Assistant Part 1 Although he's not open for business yet, W T has begun gathering information about the different types of costs that will be associated with his new errand running business He realizes it's necessary to first understand what costs he'll incur so that he can appropriately price his services He plans to use Facebook to manage his business and won't have a physical office So his costs will mainly involve advertising, customer management, collecting payments and gas for his car Classify each of the costs below as fixed, variable, or mixed Advertising and customer management W T will be advertising his business in two ways oSmall weekly ad in the Stillwater News Press Cost per month $120 oSocial Media A friend of W T 's helped manage the social media accounts at her summer internship and thinks she can really help him build brand recognition and attract customers Additionally, she will help him schedule jobs using Facebook She's agreed to manage his business social media accounts for a flat rate of $100 per month However, because part of her job will involve interacting with customers, she knows more time will be required as W T 's business grows So, they agreed she would also receive $1 per appointment she schedules Payment collection W T plans to collect payments using PayPal PayPal charges are based in part on the amount of each transaction Although he hasn't set prices yet, WT believes the fee for using PayPal will be around $0 75 per job Gas for his car W T 's parents have agreed to maintain and insure his car for the remainder of the school year, so the only transportation cost associated with his business will be gas to run each errand Based on the average miles per gallon of his car and the size of the service area he'll be offering, he thinks gas costs will be $4 per job 1 Relative to each month of operation, are the above costs fixed, variable, or mixed Cost Fixed Variable Mixed Stillwater News Press ad Social media manager PayPal Gas 2 Right now, we're simplifying a bit and some costs are excluded from the information provided above Long term, what other costs should W T consider Part 2 W T wants to work about 20 hours each week He estimates that each job will take around 1 5 hours to complete, so he estimates he can complete around 50 jobs per month However, he knows business will likely be slow at the beginning and some jobs may take less than 1 5 hours to complete So he'd like to look at a range of possibilities Complete the table below by filling in the missing amounts for the level of activity shown in the first row Round all cost per unit figures to the nearest whole penny Number of jobs 25 50 75 Total costs per month Fixed $ $ $ Variable $ $ $ Total costs $ $ $ Cost per job Fixed $ $ $ Variable $ $ $ Total cost per job $ $ $ Computations 1 Why does the cost per job decrease as the number of jobs increases 2 Using Excel, create a graph to plot total cost and cost per unit if W T completes 25, 50, or 75 jobs per month 3 What are W T 's major business risks How can they be minimized ", "question_description": "

Fixed, variable, or mixed?<\/u><\/strong><\/p>

An understanding of cost concepts is certainly necessary in the business world, but it also is very valuable when considering your own personal finances. <\/p>

Think about costs that you or your parents pay while you are attending OSU. Identify at least 5 routine cost examples (associated with you personally). Examples include rent, utilities, groceries, clothing, cell phone, car expenses (other than gas), gas, and entertainment. Then, indicate whether each cost is (a) fixed, (b) variable, or (c) mixed (place an \"X\" in the appropriate column). <\/p>

Note that cost classification may vary across your group members. For example, if you rent an apartment with utilities included, both your rent and utilities costs are fixed. However, if you rent an apartment and pay the City of Stillwater for your water and electric costs, your rent may be fixed, but your utilities are mixed. That's because you must pay the city a minimum fee plus an additional charge per gallon of water and kilowatt hour of electricity used.<\/p>

Expense<\/p>

Approximate cost per month<\/p>

Fixed<\/p>

Variable<\/p>

Mixed<\/p>

1.<\/p>

$<\/p>

<\/p>

<\/p>

<\/p>

2.<\/p>

$<\/p>

<\/p>

<\/p>

<\/p>

3.<\/p>

$<\/p>

<\/p>

<\/p>

<\/p>

4.<\/p>

$<\/p>

<\/p>

<\/p>

<\/p>

5.<\/p>

$<\/p>

<\/p>

<\/p>

<\/p>

6.<\/p>

$<\/p>

<\/p>

<\/p>

<\/p>

7.<\/p>

$<\/p>

<\/p>

<\/p>

<\/p>

8.<\/p>

$<\/p>

<\/p>

<\/p>

<\/p>

9.<\/p>

$<\/p>

<\/p>

<\/p>

<\/p>

10.<\/p>

$<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

Relative to variable costs, do fixed costs present different personal financial risks? Explain.<\/p>

<\/p>

<\/strong><\/p>

Semester Case - My Assistant<\/strong><\/p>

<\/p>

As you know from your pre-class work, this semester we'll be completing tasks related to the business ventures of entrepreneur W.T. Anderson. Building on the work you did before class, let's help W.T. sort out the cost environment for his new business, My Assistant. <\/p>

<\/p>

Part 1<\/u><\/p>

Although he's not open for business yet, W.T. has begun gathering information about the different types of costs that will be associated with his new errand running business. He realizes it's necessary to first understand what costs he'll incur so that he can appropriately price his services. <\/p>

<\/p>

He plans to use Facebook to manage his business and won't have a physical office. So his costs will mainly involve advertising, customer management, collecting payments and gas for his car. Classify each of the costs below as fixed, variable, or mixed:<\/p>

Advertising and customer management. W.T. will be advertising his business in two ways:<\/p>

oSmall weekly ad in the Stillwater News Press<\/em>. Cost per month: $120<\/p>

oSocial Media. A friend of W.T.'s helped manage the social media accounts at her summer internship and thinks she can really help him build brand recognition and attract customers. Additionally, she will help him schedule jobs using Facebook. She's agreed to manage his business social media accounts for a flat rate of $100 per month. However, because part of her job will involve interacting with customers, she knows more time will be required as W.T.'s business grows. So, they agreed she would also receive $1 per appointment she schedules. <\/p>

Payment collection. W.T. plans to collect payments using PayPal. PayPal charges are based in part on the amount of each transaction. Although he hasn't set prices yet, WT believes the fee for using PayPal will be around $0.75 per job.<\/p>

Gas for his car. W.T.'s parents have agreed to maintain and insure his car for the remainder of the school year, so the only transportation cost associated with his business will be gas to run each errand. Based on the average miles per gallon of his car and the size of the service area he'll be offering, he thinks gas costs will be $4 per job.<\/p>

<\/p>

<\/p>

1.Relative to each month of operation, are the above costs fixed, variable, or mixed? <\/p>

<\/p>

<\/p>

Cost<\/u><\/p>

Fixed<\/u><\/p>

Variable<\/u><\/p>

Mixed<\/u><\/p>

Stillwater News Press ad<\/p>

<\/p>

<\/p>

<\/p>

Social media manager<\/p>

<\/p>

<\/p>

<\/p>

PayPal<\/p>

<\/p>

<\/p>

<\/p>

Gas<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

2.Right now, we're simplifying a bit and some costs are excluded from the information provided above. Long-term, what other costs should W.T. consider?<\/p>

<\/p>

<\/u><\/p>

Part 2<\/u><\/p>

W.T. wants to work about 20 hours each week. He estimates that each job will take around 1.5 hours to complete, so he estimates he can complete around 50 jobs per month. However, he knows business will likely be slow at the beginning and some jobs may take less than 1.5 hours to complete. So he'd like to look at a range of possibilities. Complete the table below by filling in the missing amounts for the level of activity shown in the first row. Round all cost-per-unit figures to the nearest whole penny. <\/p>

<\/p>

<\/p>

Number of jobs<\/p>

25<\/p>

50<\/p>

75<\/p>

Total costs per month<\/p>

Fixed<\/p>

$<\/p>

$<\/p>

$<\/p>

Variable<\/p>

$<\/p>

$<\/p>

$<\/p>

Total costs<\/p>

$<\/p>

$<\/p>

$<\/p>

Cost per job<\/p>

Fixed<\/p>

$<\/p>

$<\/p>

$<\/p>

Variable<\/p>

$<\/p>

$<\/p>

$<\/p>

Total cost per job<\/p>

$<\/p>

$<\/p>

$<\/p>

<\/p>

Computations:<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

1.Why does the cost per job decrease as the number of jobs increases?<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

2.Using Excel, create a graph to plot total cost and cost per unit if W.T. completes 25, 50, or 75 jobs per month.<\/p>

3.What are W.T.'s major business risks? How can they be minimized?<\/p>", "transcribed_text": "", "related_book": { "title": "Managerial Accounting", "isbn": "134128524, 978-0134128528", "edition": "5th edition", "authors": "Karen W. Braun, Wendy M. Tietz", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1329.jpg", "uri": "\/textbooks\/managerial-accounting-5th-edition-1329", "see_more_uri": "\/textbooks\/business-entrepreneurship-3401" }, "free_related_book": { "isbn": "3540122990", "uri": "\/textbooks\/harmonic-analysis-proceedings-of-a-conference-held-in-cortona-italy-july-1-9-1982-1983rd-edition-978-3540122999-272671", "name": "Harmonic Analysis Proceedings Of A Conference Held In Cortona Italy July 1 9 1982", "edition": "1983rd Edition" }, "question_posted": "2024-06-28 05:44:53", "see_more_questions_link": "\/study-help\/questions\/business-general-management-2023-February-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/in-midmay-there-are-two-outstanding-call-option-contracts-available", "description": "In mid-May, there are two outstanding call option contracts available on the stock of ARB Co.: a. Assuming that you form a portfolio consisting of one Call #1 held long and two Calls #2 held short,...", "stars": 3 }, { "url": "\/study-help\/business-statistics-in-practice\/b-what-is-the-minimin-choice-1983601", "description": "=+b) What is the minimin choice?", "stars": 3 }, { "url": "\/on-january-1-2015-weaver-corporation-purchased-a-patent-for", "description": "On January 1, 2015, Weaver Corporation purchased a patent for $ 237,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January...", "stars": 3 }, { "url": "\/study-help\/questions\/b-bill-jarvis-a-fund-manager-wishes-to-rebalance-his-9856483", "description": "B. Bill Jarvis, a fund manager, wishes to rebalance his portfolio of stocks by selling his current holding of 3,000 Intel stocks in 5 days-time. Today, February 12, the March Intel stock futures...", "stars": 3 }, { "url": "\/study-help\/questions\/suppose-a-share-of-stock-sells-for-72-the-riskfree-10031544", "description": "Suppose a share of stock sells for $72. The risk-free rate is 6 percent, and the stock price in one year will be either $78 or $88. a. What is the value of a call option with an exercise price of...", "stars": 3 }, { "url": "\/study-help\/questions\/on-march-1-2025-oriole-company-purchased-land-for-an-835565", "description": "On March 1, 2025, Oriole Company purchased land for an office site by paying $2520000 cash. Oriole began construction on the office building on March 1. The following expenditures were incurred for...", "stars": 3 }, { "url": "\/study-help\/questions\/icebreaker-company-a-usbased-company-purchases-materials-from-a-foreign-835604", "description": "Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 17,000 dinars to be made on March 1, 2021. The materials are consumed...", "stars": 3 }, { "url": "\/study-help\/questions\/assume-avaya-contracted-to-provide-a-customer-with-internet-infrastructure-835615", "description": "Assume Avaya contracted to provide a customer with Internet infrastructure for $2,100,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below:...", "stars": 3 }, { "url": "\/study-help\/questions\/problem-92-algo-lower-of-cost-or-net-realizable-value-835773", "description": "Problem 9-2 (Algo) Lower of cost or net realizable value; by product, category, and total inventory [LO9- 1] Ace Hardware Store sells two product categories, tools and paint products. Information...", "stars": 3 }, { "url": "\/study-help\/questions\/in-theory-a-30ghz-processor-is-not-50-faster-than-834674", "description": "In theory, a 3.0GHz processor is not 50% faster than a 2.0GHz processor.", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/1-on-june-1-2019-adelphi-corporation-issued-210000-of-4249057", "next": "\/study-help\/questions\/please-help-connect-x-d-2pac-ft-eminem-4249059" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Fixed, variable, or mixed? An understanding of cost concepts is certainly necessary", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/fixed-variable-or-mixed-an-understanding-of-cost-concepts-is-4249058" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } } }