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Peyton Products makes paddle boards, and would like to identify the behavior of certain costs with respect to each paddle board produced and sold.
Required:
Identify each of the following costs as variable (V), fixed (F), or mixed (M).
1. Salary of chief financial officer (CFO).
2. Parts required for production.
3. Straight-line depreciation on factory machinery.
4. Salaries and commissions of salespeople.
5. Lease payments of $30,000 for factory equipment plus 5 cents for each
keyboard completed.
6. Company cell phones with flat fee of $80 plus 5 cents per minute.
7. Invoices sent to customers.
8. Salary of production manager.
9. Hourly wages for assembly workers.
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