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Topic: Business
Number of pages / Number of words: 2 / 315
Essay's paper body

Item: Raw Material (cost for hamburgers) (Variable)

Total Annual Cost: 650

Item: Rent (Fixed)

Total Annual Cost: 9000

Raw materials are a variable cost and the building rent is a fixed cost because the variable cost changes based on how many units are sold but the cost per unit stays the same so it will be fixed and rent will not change based on production when using the relevant range but the fixed cost per each unit will change (Horngren et al...


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Item: Raw Material (cost for hamburgers) (Variable)

Total Annual Cost: 650

Item: Rent (Fixed)

Total Annual Cost: 9000

Raw materials are a variable cost and the building rent is a fixed cost because the variable cost changes based on how many units are sold but the cost per unit stays the same so it will be fixed and rent will not change based on production when using the relevant range but the fixed cost per each unit will change (Horngren et al...


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