Classify each of the following costs incurred by FIT as fixed, variable, or mixed:
Problem 1 - FIT, Inc., operates a chain of sporting goods stores in the southwestern United States. Each store has a store manager, several sales associates, and two or three office staff personnel. The store manager is paid $4,000 per month plus a bonus based on the amount of sales. Sales associates receive a salary of $3 per hour and a commission of 3% of their total sales. Office staff receive hourly wages. Each of the stores is leased at a monthly rent of $6,000.
Required: Classify each of the following costs incurred by FIT as fixed, variable, or mixed:
____________ (a.) Office staff salaries relative to the amount of sales recorded by an individual store
____________ (b.) Store manager’s compensation, relative to the amount of sales recorded by a store
____________ (c.) Cost for bags (used to bag each customer’s purchase) and cash register tape relative to amount of sales recorded by a store
____________ (d.) Lease cost relative to the amount of sales recorded by a store
____________ (e.) Office staff salaries relative to the number of stores
____________ (f.) Sales associates’ compensation relative to the amount of sales recorded by a store
____________ (g.) Electric utility cost relative to the amount of sales recorded by a store
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