Question
For each of the following costs, identify the cost graph that best describes its cost behavior as the number of units produced and sold increases:
For each of the following costs, identify the cost graph that best describes its cost behavior as the number of units produced and sold increases:
(a) | Sales commissions of $5,000 plus $.05 for each item sold. |
(b) | Rent on warehouse of $10,000 per month. |
(c) | Insurance costs of $2,500 per month. |
(d) | Per-unit cost of direct labor. |
(e) | Total salaries of quality control supervisors. One supervisor must be added for each additional work shift. |
(f) | Total employer pension costs of $.30 per direct labor hour. |
(g) | Per-unit straight-line depreciation costs. |
(h) | Per-unit cost of direct materials. |
(i) | Total direct materials cost. |
(j) | Electricity costs of $5,000 per month plus $.0004 per kilowatt-hour. |
(k) | Per-unit cost of plant superintendent's salary. |
(l) | Per-unit cost of direct labor. |
(m) | Repairs and maintenance costs of $3,000 for each 2,000 hours of factory machine usage. |
(n) | Total direct labor cost. |
(o) | Straight-line depreciation on factory equipment. |
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