Variable, fixed, and mixed costs Holly’s DayCare has been in operation for several years. Consider the following costs:
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1. Building rent. |
6. Holly’s salary. |
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2. Toys. |
7. Wages of afterschool employees. |
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3. Salary of office manager, who also |
8. Drawing paper for student art work. |
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receives a bonus based on number of |
9. Straight line depreciation of tables, |
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students enrolled. |
chairs, and playground equipment. |
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4. Afternoon snacks. |
10. Fee paid to security company for |
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5. Lawn service contract at $200 a month; |
monthly service (contract includes up to |
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any extra work needed is billed at an |
four responses in a month; responses |
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hourly rate based on the time needed to |
over four in a month incur an additional |
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complete the job. |
fee per response). |
Requirement
1. Identify the costs as variable (V), fixed (F), or mixed (M).