Michael Jordan Inc., a manufacturer of basketball shoes, includes three different costs in its manufacturing$$ operations: Leather, Factory$$ Rent, Factory Utilities. Per unit costs for each cost type at two different activity levels are as$$ follows:

Production Level Leather Factory Rent Factory Utilities

$50,000$ Units $$20\mathrm{.}00$ $$50\mathrm{.}00$ $$18\mathrm{.}00$

$100,000$ Units $$20\mathrm{.}00$ $$40\mathrm{.}00$ $$9\mathrm{.}00$

The cost behavior of each cost listed above is:

A$.$ Leather$$ Variable; Factory Rent$$ Variable; Factory Utilities$$ Variable

B$.$ Leather $$ Variable; Factory Rent$$ Mixed; Factory Utilities$$ Fixed

C$.$ Leather $$ Mixed; Factory Rent$$ Mixed; Factory Utilities$$ Mixed

D$.$ Leather $$ Fixed; Factory Rent$$ Variable; Factory Utilities$$ Variable

E$.$ Leather$$ Fixed; Factory Rent$$ Mixed; Factory Utilities$$ Fixed

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is B Leather Variabl... View the full answer