Identify Each Cost Below as Variable (V), Fixed (F), or Mixed

question 30

Essay

Identify each cost below as variable (V), fixed (F), or mixed (M), relative to units sold. Explain the reason for your answer.
$$\begin{array} { | l | r | r | r | } \hline \text { Units Produced } & 100 & 500 & 1,000 \\\hline \text { Total electric cost } & \$ 1,500 & \$ 1,650 & \$ 1,700 \\\hline \text { Supervisor's monthly salary } & \$ 4,500 & \$ 4,500 & \$ 4,500 \\\hline \text { Assembly line workers' per hour wage rate } & \$ 30 & \$ 30 & \$ 30 \\\hline \text { Total materials cost } & \$ 800 & \$ 4,000 & \$ 8,000 \\\hline \text { Depreciation on factory equipment } & \$ 5,000 & \$ 5,000 & \$ 5,000 \\\hline \text { Total delivery costs } & \$ 1,400 & \$ 1,800 & \$ 2,250 \\\hline\end{array}$$

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Definitions:

Begging The Question

A logical fallacy in which the conclusion of an argument is assumed in the formulation of the argument itself.

Slippery Slope

A logical fallacy that suggests a minor action will lead to major and oftentimes negative consequences without providing evidence for such a drastic outcome.

Kant

A German philosopher in the 18th century known for critical philosophy, especially his Critique of Pure Reason.

Teleological Theory

An ethical theory that holds the consequences of an action as the basis for any judgment about the morality of that action.