5. Draw the following cost behavior situations. Show Total costs on the Y-axis and the cost driver on the X-axis: (NEAT free hand sketches are fine and be sure to label the axes) a) Dr Tebbe decides to pay faculty a fixed wage upto 50 students per class and then Rs 100 per student after that. b) FC Bus service decides to charge a declining rate per kilometer for students using the service. c) Salaries of ustaads at Nirala where 1 ustaad is needed if upto 100 hours are worked in production, 2 ustaads are needed from 101-200 hours and 3 ustaads are needed for production between 201-300 hours.
5. Draw the following cost behavior situations. Show Total costs on the Y-axis and the cost driver on the X-axis: (NEAT free hand sketches are fine and be sure to label the axes) a) Dr Tebbe decides to pay faculty a fixed wage upto 50 students per class and then Rs 100 per student after that. b) FC Bus service decides to charge a declining rate per kilometer for students using the service. c) Salaries of ustaads at Nirala where 1 ustaad is needed if upto 100 hours are worked in production, 2 ustaads are needed from 101-200 hours and 3 ustaads are needed for production between 201-300 hours.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![5. Draw the following cost behavior situations. Show Total costs on the Y-axis and the
cost driver on the X-axis:
(NEAT free hand sketches are fine and be sure to label the axes)
a) Dr Tebbe decides to pay faculty a fixed wage upto 50 students per class and then Rs 100
per student after that.
b) FC Bus service decides to charge a declining rate per kilometer for students using the
service.
c) Salaries of ustaads at Nirala where 1 ustaad is needed if upto 100 hours are worked in
production, 2 ustaads are needed from 101-200 hours and 3 ustaads are needed for
production between 201-300 hours.
d) The WAPDA electricity bill for your house where there is a line rent of Rs 200 per
month, a charge of Rs 1/unit for the first 300 units, a charge of Rs 2/unit for 301-400
units and then a Rs 5 charge per unit for units consumed in excess of 400
Units.
e) Total salesmen compensation for Nirala where the salesmen are paid a fixed salary of Rs
5000 per month plus a commission of 2% of sales upto a maximum total compensation of
Rs 12,000 per month.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F067d286d-8c9d-4c52-a8a4-26797044d394%2F571eff0d-7bfc-4879-b3b8-9bcdfc13d399%2Fqcpc9x_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. Draw the following cost behavior situations. Show Total costs on the Y-axis and the
cost driver on the X-axis:
(NEAT free hand sketches are fine and be sure to label the axes)
a) Dr Tebbe decides to pay faculty a fixed wage upto 50 students per class and then Rs 100
per student after that.
b) FC Bus service decides to charge a declining rate per kilometer for students using the
service.
c) Salaries of ustaads at Nirala where 1 ustaad is needed if upto 100 hours are worked in
production, 2 ustaads are needed from 101-200 hours and 3 ustaads are needed for
production between 201-300 hours.
d) The WAPDA electricity bill for your house where there is a line rent of Rs 200 per
month, a charge of Rs 1/unit for the first 300 units, a charge of Rs 2/unit for 301-400
units and then a Rs 5 charge per unit for units consumed in excess of 400
Units.
e) Total salesmen compensation for Nirala where the salesmen are paid a fixed salary of Rs
5000 per month plus a commission of 2% of sales upto a maximum total compensation of
Rs 12,000 per month.
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