Question
(i) Brief Exercise 11-1 (Static) Identifying cost behavior LO 11-1 GameBox is a nationwide retailer specializing in selling game related merchandise. Each store employs four
(i) Brief Exercise 11-1 (Static) Identifying cost behavior LO 11-1 GameBox is a nationwide retailer specializing in selling game related merchandise. Each store employs four people; one is a manager paid a salary plus a bonus equal to 5 percent of sales. Other employees, two sales staff and one inventory manager, are paid hourly wages. Each manager is budgeted $5,000 per month for lease costs. Required: Classify each of the following costs incurred by GameBox as fixed, variable, or mixed: The cost of game merchandise relative to the number of employees at each store. Lease costs relative to the number of stores. The cost of the store manager relative to the number of items sold.
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