Consider the following information: Based on the above information, select the correct statement.
A) Cost of goods sold is a mixed cost.
B) Salary cost is a mixed cost.
C) Depreciation cost is a variable cost.
D) If the company sells 20 units for $540 each, it will incur a loss of $200.

Question

Consider the following information:  Based on the above information, select the correct statement.
A) Cost of goods sold is a mixed cost. 
B) Salary cost is a mixed cost. 
C) Depreciation cost is a variable cost. 
D) If the company sells 20 units for $540 each, it will incur a loss of $200.

Quizplus · Accepted Answer

As shown below, the salary cost is a mixed cost since it differs in total and also differs on a per unit basis.
$6,000 ÷ 20 = $300.00
$7,800 ÷ 40 = $195.00
$9,200 ÷ 60 = $153.33

Consider the Following Information: Based on the Above Information