Type of cost Problem 1. Identifying cost behavior At the various activity levels shown, Jensen Company incurred the following costs. Units Sold 20 40 60 80 100 a. Total Rent Cost 3.200 3.200 3,2003,200 3200 b. Cost per unit of merchandise sold 90 90 90 90 90 c. Total Cost of Shopping bags 2 4 6 8 10 d. Total Insurance Cost 480 480 480 480 480 e. Total salary cost 1,200 1,600 2,000 2,400 2.800 f. Total cost of goods sold 1,800 3.600 5,400 7.200 9,000 g. Depreciation cost per unit 240 120 80 60 48 Required Identify each of these costs as fixed or variable. Problem 2. Art on You, Inc. has agreed to pay a well-known artist a $20,000 commission for the right to exhibit his work for one month. Determine the total commission cost and the commission cost per person if 2,000, 3,000, or 5,000 people attend the exhibition. Is the commission cost fixed or variable? 2,000 3,000 5,000 Number of People Attending Total Commission Cost Average Commission Cost Per Person Type of cost