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Question: Mixed Costs Refer to the information for Ben Palman's art gallery above.
Required: 1. Prepare a graph that illustrates the relationship between the cost of giving opening shows and the number of opening shows given. (Let opening show cost be the vertical axis and number of opening shows given be the horizontal axis.) Would you classify this cost as a strictly variable cost, a fixed cost, or a mixed cost?
2. Prepare a graph that illustrates the relationship between the cost of running the gallery and the number of opening shows given. (Let gallery cost be the vertical axis and number of opening shows given be the horizontal axis.) Would you classify this cost as a strictly variable cost, a fixed cost, or a mixed cost?
3. Prepare a graph that illustrates the relationship between Ben's total costs (the sum of the costs of giving opening shows and running the gallery) and the number of opening shows given. (Let total cost be the vertical axis and number of opening shows given be the horizontal axis.) Would you classify this cost as a strictly variable cost, a fixed cost, or a mixed cost?
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