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How do you do this A. Classify each of the costs (a. through j.) below under C. as a variable cost or a fixed cost.

How do you do this

  1. A. Classify each of the costs (a. through j.) below under C. as a variable cost or a fixed cost.
  2. B. Explain the importance of distinguishing between variable and fixed costs.
  3. C. How would you complete a budgeted income statement, assuming 600 units to be produced and sold, a per unit selling price of $85, an income tax rate of 28% and the following information.
  4. Cost of goods sold of $35 per unit
  5. Labor = $400/month
  6. One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month.
  7. Advertising fees = $3,000
  8. Bank fees = $200
  9. Phone/internet =$150 per month
  10. Shipping = $3 per unit
  11. Utilities = $100 per month
  12. Office Supplies = $900
  13. Conference Exhibitor Fee = $3000
  14. Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1200

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