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Question - Cost Behavior when costs are semi-variable: Data from the payroll department of Dominguez Company for the past two months follow:
November...........# of employees paid 6,000.......Payroll department costs $12,000
December...........# of employees paid 9,000.......Payroll department costs $15,000
a. Sketch a line describing these costs as a function of the number of employees paid.
b. What is the apparent variable cost per employee paid?
c. The line should indicate that these costs are semi-variable. What is the apparent fixed cost per month of running the payroll department during November and December?
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