Problem: Module 5 Textbook Problem 1

Learning Objectives:

• 5-3 Identify and describe fixed, variable, and mixed cost behavior
• 5-4 Demonstrate the effects of operating leverage on profitability

Jordan Corporation incurs the following annual fixed costs.

Item	Cost
Depreciation	$	68,000
Officers salaries		180,000
Long-term lease		55,000
Property taxes		14,000