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Instructions: The company manufactures durable multi - purpose widgets and sells them to retail stores. The firms rent's a warehouse at an annual cost of
Instructions:
The company manufactures durable multipurpose widgets and sells them to retail stores. The firms rent's a warehouse at an
annual cost of $ and employes laborers. Laborers produce the widgets In the firm's factory at a cost of $ per unit. The
firm purchased machinery for $ which has an annual depreciation cost of $ Additionally, The Widget Maker must
maintain insurance to operate at a cost of $ per year. To maintained the machinery, the company has a labor contract
with an outside company Stan's Machine Repair. Stan's charges the company $ per year. In addition, The Widget Maker
must keep their machines well oiled. The cost is cents per widget. Widgets are manufactured using raw materials that cost
$ per widget and then packaged at a cost of cents per widget. Lastly, the firm pays salaries to its factory supervisor in the
amount of $ and monthly utilities of $ or $ annually. The machinery increases the utility cost by cents per
widget manufactured. First, classify costs are fixed, variable, or mixed.
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