DQuestion 21 4 pts PGP Company wants to start an employee appreciation program.

Question

DQuestion 21 4 pts PGP Company wants to start an employee appreciation program. They have started discussions regarding centering this program around a local minor league baseball team. PGP Company can buy a season pass for a box at the field for $10,000. The company would be served cold refreshments and the usual tasty baseball field treats. These food and drink items would be charged to PGP Company based on the amount consumed at each game. Which of the following costs would be considered a variable cost? the cost of purchasing the food and drink items the cost of purchasing the box the cost of purchasing the box and the cost of purchasing the food and drink items neither the cost of purchasing the box nor the cost of purchasing the food and drink items

Explanation / Answer

Question 21 *the cost of purchasing the food and drink items. It is a variable cost as it varies directly with the number of items consumed. Question 22 *Cost C. The cost per unit is the same at all levels. it is 500/100=5, 1000/200=5 and 1500/300 =5.

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