You are managing a manufacturing company that produces custo…
You are managing a manufacturing company that produces custom-made furniture. The company pays the following costs: Cost Amount $ Direct Labor $ 550,000 Loan Payment $320,000 Sales commission $ 50,000 Office Utility Bills $ 170,000 Direct material $ 400,000 Rent $ 180,000 Income Taxes $ 180,000 Required: 1. Classify whether the costs are variable costs or fixed costs. 2. Calculate the total variable costs, total fixed costs, and total costs.
Read Details