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