Questions attached

SUM X V fx ='Homework Q2'!E50+'Homework Q1'!F13+'Homework Q1'!A2:D9 A B C D E F G 2-31 Variable- and Fixed-Cost Behavior Answer Refer to Exhibits 2-2 and 2-3 on pages 38 and 39. Part of a company's marketing function is as described 1) Which is the fixed cost? w in Exhibit 2-2. Two of the many marketing-function activities are advertising and selling. The annual cost behavior of the resources used to perform the selling activity is depicted in the following diagram. With 2) Which is the variable cost? respect to the cost driver sales dollars, which of the two costs is fixed? Which cost is variable? What is the 3) Total cost of selling if sales dollars = $24,000,000 UT total cost of the selling activity if sales dollars are $24,000,000? What is the total cost of selling if sales 4) Total cost of selling if sales dollars = $12,000,000 6 dollars are $12,000,000? Does the total cost of selling decrease by half in response to a 50% decrease in the cost driver level? Why or why not? 7 8 9 Sales commissions 10 $3,200,000 annual O Travel costs Entertainment costs 11 salaries of sales personnel 12 20% of sales dollars 13 14 F13 15 SELLING ACTIVITY 16 Cost Driver Sales Dollars 17 18 19 20 21 22 23