Question: Exercise 6-1A Distinction between relevance and cost behavior LO 6-1 Gayla Ojeda is trying to decide which of two different kinds of candy to sell

 Exercise 6-1A Distinction between relevance and cost behavior LO 6-1 Gayla

Exercise 6-1A Distinction between relevance and cost behavior LO 6-1 Gayla Ojeda is trying to decide which of two different kinds of candy to sell in her retail candy store. One type is a name brand candy that will practically sell itself. The other candy is cheaper to purchase but does not carry an identifiable brand name. Ms. Ojeda believes that she will have to incur significant advertising costs to sell this candy Several cost items for the two types of candy are as follows: Brandlesa Candy Cont per text Sales commissions per box Rent of display space Advertising 4.00 1.00 900.00 3,000.00 Name-Brand Candy Cost per box Sales comissions per box Rent of display apace Advertising S 6.00 1.00 900.00 2,000.00 Required Identify each cost as being relevant or irrelevant to Ms. Ojeda's decision and indicate whether it is fixed or variable relative to the number of boxes sold Relevance Behavior Cost items Cost per box Sales commissions per box Rent of display space Advirtising

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