Below are cost and measures of activity in a variety of organizations. Classify

Question

Below are cost and measures of activity in a variety of organizations. Classify each cost as variable or fixed with respect to the indicated measure of activity by listing out the numbered item and a "V" for variable or an "F" for fixed cost. For exampel: 1F, 2F, etc.

Cost / Measure of Activity

1. The cost of Xray film used in the radiology lab at Virginia Mason Hospital / Number of Xrays taken

2. Cost of advertising a rock concert in NYC / Number of rock concert tickets sold

3. Cost of renting retail space for McDonalds restaurant in Hong Kong / Total sales at the restaurant

4. Electrical cost of running a roller coaster at Magic Mt. / Number of times the roller coaster is run

5. Property taxes paid by yoru local cinema theater / Number of tickets sold

6. Cost of sales commissions paid to salespersons at Nordtrom store / Total sales at the store

7. Property insurance on a Coca-Cola bottling plant / Number of cases of bottles produced

8. Costs of synthetic materials used to make a particular model of running shoe / Number of shoes of that model produced

9. Costs of shipping Panasonic TVs to retail stores / The number of TVs sold

10. Cost of leasing an ultrascan diagnostic machine a hospital in Paris / The number of patients how are scanned with the machine

Explanation / Answer

a) the cost of x-ray film used in the radiology lab at the a hospital---------------number of x-rays =1aV b) the cost of advertising a rock concert--------------------number of rock concerts tickets sold =1bV c) the cost of renting space in Hong Kong----------------Total sales at the restaurant= 1cF d) the electrical cost of running a roller coaster--------------number of times the roller costar is run 1DV e) Property taxes paid by local cinema theater ------------number of tickets sold 1 e F f) the cost of sale commission paid to salesperson -------total sales at the store 1f V g) property insurance on a coca-cola bottling plant-------number of cases of bottle produced 1gF h) the costs of synthetic material used to make a particular model of running shoe-------the number of shoes of the model produced 1hV i) the cost of shipping of TV'S to retail stores---------------------the number of TV's sold 1iV j) the cost of leasing an ultra scan diagnostic machine to a hospital in Paris--------the number of patients scanned by the machine 1 j F

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