A number of costs and measures of activity are listed below. Cost DescriptionPossible Measure of Activity1.Cost of heating a hardware storeDollar sales2.Windshield wiper blades installed on autos at an auto assembly plantNumber of autos assembled3.Cost of tomato sauce used at a pizza shopPizzas cooked4.Cost of shipping bags of fertilizer to a customer at a chemical plantBags shipped5.Cost of electricity for production equipment at a snowboard manufacturerSnowboards produced6.Cost of renting production equipment on a monthly basis at a snowboard manufacturerSnowboards produced7.Cost of vaccine used at a clinicVaccines administered8.Cost of sales at a hardware storeDollar sales9.Receptionist's wages at dentist's officeNumber of patients10.Salary of production manager at a snowboard
manufacturerSnowboards producedRequired:For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it.
What will be an ideal response?
| Cost Description | Possible Measure of Activity | ||
| 1. | Cost of heating a hardware store | Dollar sales | Fixed |
| 2. | Windshield wiper blades installed on autos at an auto assembly plant | Number of autos assembled | Variable |
| 3. | Cost of tomato sauce used at a pizza shop | Pizzas cooked | Variable |
| 4. | Cost of shipping bags of fertilizer to a customer at a chemical plant | Bags shipped | Variable |
| 5. | Cost of electricity for production equipment at a snowboard manufacturer | Snowboards produced | Variable |
| 6. | Cost of renting production equipment on a monthly basic at a snowboard manufacturer | Snowboards produced | Fixed |
| 7. | Cost of vaccine used at a clinic | Vaccines administered | Variable |
| 8. | Cost of sales at a hardware store | Dollar sales | Variable |
| 9. | Receptionist's wages at dentist's office | Number of patients | Fixed |
| 10. | Salary of production manager at a snowboard manufacturer | Snowboard produced | Fixed |
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