Question: 1. Identify the costs below as either variable, fixed, or mixed. (b) Also, thoroughly and clearly support your identify of each cost. a Salary for
1. Identify the costs below as either variable, fixed, or mixed. (b) Also, thoroughly and clearly support your identify of each cost. a Salary for VP of Sales b. Water bill for manufacturing plant c Straight-line method depreciation on the headquarters building d Oil used to cook the potatoes that are becoming chips 2. The highest month of telephone costs is December equaling $1,155 when the total long distance calls (LDCs) was 2,000. The lowest month of telephone costs is May equaling S660 where there were 875 LDCS. How much is the estimated utility cost for July if the projected LDCs is 1,500 LDCs. Show all computations. 3. Avont is asking for your help in determining the cost structure of his garage-based custom cabinet building company. He provides the following information: Utility $500/month Depreciation on Saws and other equipment 350/month Advertising 50/month Material (wood, paint, other) $60/cabinet Direct labor S50/cabinet Indirect labor $10/cabinet Avont charges $250 per cabinet Required: (Be sure to label ALL relevant amounts and calculations) 1. Advise Avont on how many cabinets he should build sell per month so that his business will be at break even. 2. What if Avont decides to raise the price of the cabinets to $320/cabinet? How will your answer to #1 change? Before making the price change, what should Avont think about and consider regarding his business? Be specific
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