Problem 2.53 Cost traceability and decision contexts (LO3). Kyle Corp. is a diversified firm with numerous plants. Each plant is devoted to producing one or two product lines. Management is considering several options concerning the plant in Grand Junction, Nebraska. This plant currently makes toy farm equipment and miniature cars. Decision 1: Whether to continue producing a deluxe version of the farm toys? The deluxe version uses the same machines as used by the regular models, but it has additional finishing and accessories. Decision 2: Whether to continue making farm toys? The firm will dispose of the machines used for this product line if the firm discontinues the line. Most of the machines used for making farm toys are unique to the line but some of the die-casting machines are also used to stamp out miniature cars. Decision 3: Whether to close the Grand Junction plant? Required: Classify the following costs with respect to their traceability for the three decisions listed. 1. Cost of special die used to make the deluxe version of farm toys. Each die can make enough toys to meet a year's demand. 2. Labor used to make the deluxe farm toy. 3. Cost of dedicated machines used to make farm toys. 4. Engineering support provided solely to maintain the farm toy line. 5. Advertising for farm toys. 6. Salary paid to the manager of the Grand Junction plant. 7. Factory rent. 8. IT support provided by the head office to the Grand Junction plant. Problem 2.59 Cost variability, step costs (LO3, LO4). Christine Mbai owns and operates an extremely popular Montessori school in suburban Chicago. The school has its own private pickup and drop-off facilities. The following lists 12 costs Christine incurs in running her school: Required: For each cost, classify and discuss whether you believe it will be fixed (F), variable (V), mixed (M), or jump in steps (S) with respect to the number of enrolled students in the coming term (semester). In addition, discuss any arguments that support a classification other than the one you have assigned