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A company wants to determine its marketing costs for budgeting purposes. Activity measures and costs incurred for four months of the current year are presented in the table below. Advertising is considered to be a discretionary cost. Salespersons are paid monthly salaries plus commissions. The sales force was increased from 20 to 21 individuals during the month of May.
Which of the following most appropriately describes the classification and behavior of shipping costs? Classification Behavior A Variable cost $1.66 per unit sold B Mixed cost $16,000 per month plus $1.40 per unit sold C Mixed cost $30,000 per month plus $35.00 per sales order D Mixed cost $58,000 per month plus $23.33 per sales order |