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QUESTION 1 21 pc 1. Identify the costs below as either variable, fixed, or mixed, (b) Also, thoroughly and clearly support your identify of each
QUESTION 1 21 pc 1. Identify the costs below as either variable, fixed, or mixed, (b) Also, thoroughly and clearly support your identify of each cost. a. Wages of worker drying, and detailing the car b. Utility, hot-water heaters c Straight-line method depreciation on the car wash building d. Soap used in the car wash 2. If the highest month of auto maintenance costs is June equaling $5,775 when the total maintenance requisitions (REC) was 10,000 and the lowest month of telephone costs is February equaling $3,300 where there were 4,375 RECs, estimate the maintenance cost for September if the projected RECs is 7,500. Show all computations 3. Ralph is asking for your help in determining the cost structure of his custom auto sign painting company. He provides the following information: Utility $ 4,500/month Advertising 1,200/month Insurance 1,500 month Material (paint, other) Direct labor Indirect labor $420/car $350/car $ 70/car Ralph charges $1,750 per car. Required: (Be sure to label ALL relevant amounts and calculations) A. Advise Ralph on how many cabinets he should build sell per month so that his business will be at break even. B. What if Ralph decides to raise the price of the cabinets to $1,900/car? How will your answer to #1 change? Before making the price change, what should Ralph think about and consider regarding his business? Be specific 1X
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