Required: Classify each of the below operating expenses as variable or fixed. Cost Cost of goods sold increases proportionately with sales Monthly Salaries Commission as a percentage of sales Rent components: To be calculated by the group 12% Variable or Fixed Monthly Percentage of sales 4,000 1% Utilities costs incurred are independent of sales volume (they will not change if sales volume Parts and Service expense varies with sales activity and can be traced to each product line. The company uses straight-line depreciation on all depreciable assets. The property taxes are set by the City and do not change with changes in sales volume. Advertising budgets are committed to at the beginning of each year. Note 1: Sales by Segment (taken from Q2 segmented income statement) Sales Cross Country Ski Packages $ 629,384 $ Mountain Bikes 717,476 Accessories Parts & Service $ 290,513 $ 123,715