Identifying variable, fixed, and mixed costs
Holly’s Day Care has been in operation for several years. Identify each cost as a variable (V), fixed (F), or mixed (M), relative to the number of students enrolled.
Compensation of the office manager, who receives a salary plus a bonus based on the number of students enrolled.
Lawn service contract at $200 per month.
Wages of afterschool employees.
Drawing paper for student artwork.
Straight-line depreciation on furniture and playground equipment.
The fee paid to a security company for monthly service.