ash0508
Jun 15, 2012, 08:47 AM
Can someone please tell me if these are variable cost, mixed costs, or fixed costs and why. I'm getting confused.
A. Consulting fee of $200,000 paid to industry specialist for marketing advice
B. Legal fees paid to attorneys in defense of the company in a patent infringement suit, $50,000 plus $87 per hour.
C. Rental costs of warehouse, $5,000 per month plus $4 per square foot of storage used
D. Insurance premiums on property, plant, and equipment, $70,000 per year plus $5 per $30,000 of insured value over $8,000,000
E. Rent on experimental equipment, $50,000 per year
A. Consulting fee of $200,000 paid to industry specialist for marketing advice
B. Legal fees paid to attorneys in defense of the company in a patent infringement suit, $50,000 plus $87 per hour.
C. Rental costs of warehouse, $5,000 per month plus $4 per square foot of storage used
D. Insurance premiums on property, plant, and equipment, $70,000 per year plus $5 per $30,000 of insured value over $8,000,000
E. Rent on experimental equipment, $50,000 per year