Question

JPAK Company manufactures and sells mountain bikes. It normally operates eight hours a day, five days a week. Using this information, classify each of the following costs as fixed or variable with respect to the number of bikes made.

________ a. Bike frames________ d. Taxes on property________ g. Office supplies________ b. Screws for assembly________ e. Bike tires________ h. Depreciation on tools________ c. Direct labor________ f. Gas used for heating________ i. Management salaries\begin{matrix} \text{\_\_\_\_\_\_\_\_ a. Bike frames} & \text{\_\_\_\_\_\_\_\_ d. Taxes on property} & \text{\_\_\_\_\_\_\_\_ g. Office supplies}\\ \text{\_\_\_\_\_\_\_\_ b. Screws for assembly} & \text{\_\_\_\_\_\_\_\_ e. Bike tires} & \text{\_\_\_\_\_\_\_\_ h. Depreciation on tools}\\ \text{\_\_\_\_\_\_\_\_ c. Direct labor} & \text{\_\_\_\_\_\_\_\_ f. Gas used for heating} & \text{\_\_\_\_\_\_\_\_ i. Management salaries}\\ \end{matrix}

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We are asked to classify the following costs as fixed or variable costs for JPAK Company.

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