Reference no: EM132585553

Identifying cost behavior

Borris Copies Company provides professional copying services to customers through the 35 copy stores it operates in the southwestern United States. Each store employs a manager and four assistants. The manager earns $4,000 per month plus a bonus of 3 percent of sales. The assistants earn hourly wages. Each copy store costs $3,000 per month to lease. The company spends $5,000 per month on corporate-level advertising and promotion.

Required

Question 1: Classify each of the following costs incurred by Borris Copies as fixed, variable, or mixed.

1. Lease cost relative to the number of copies made for customers.
2. Assistants' wages relative to the number of copies made for customers.
3. Store manager's salary relative to the number of copies made for customers.
4. Cost of paper relative to the number of copies made for customers.
5. Lease cost relative to the number of stores.
6. Advertising and promotion costs relative to the number of copies a particular store makes.