Identify Each Cost Below as Variable (V),fixed (F),or Mixed (M),relative

question 107

Essay

Identify each cost below as variable (V),fixed (F),or mixed (M),relative to units sold.Explain the reason for your answer.
$$\begin{array} { | l | r | r | r | } \hline \text { Units Produced and Sold } & \mathbf { 1 0 0 } & \mathbf { 5 0 0 } & \mathbf { 1 , 0 0 0 } \\\hline \text { Total electric cost } & \$ 1,500 & \$ 1,650 & \$ 1,700 \\\hline \text { Supervisor's monthly salary } & \$ 4,500 & \$ 4,500 & \$ 4,500 \\\hline \text { Assembly line workers' per hour wage rate } & \$ 30 & \$ 30 & \$ 30 \\\hline \text { Total materials cost } & \$ 800 & \$ 4,000 & \$ 8,000 \\\hline \text { Depreciation on factory equipment } & \$ 5,000 & \$ 5,000 & \$ 5,000 \\\hline \text { Total deliverycosts } & \$ 1,400 & \$ 1,800 & \$ 2,250 \\\hline\end{array}$$

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Definitions:

Output

The amount of something produced by a person, machine, or industry.

Function

A mathematical relation in which each element of a domain is associated with exactly one element of a range.

Production Function

An equation or graph that represents the maximum output that can be produced with a given set of inputs, showing the relationship between input and output levels in the production process.

Factors Of Production

The inputs used in the production of goods or services in the attempt to make an economic profit, including land, labor, capital, and entrepreneurship.