ACCT CH 11 100% SOLUTION

ACCT CH 11 100% SOLUTION walden universitySelect the true statement: a. As volume increases fixed cost per unit remains constant. b. As volume increases variable cost per unit increases. c. As volume decreases fixed cost per unit increases. d. As volume increases variable cost per unit decreases. - ANSWER c. As volume decreases fixed cost per unit increases. The graph below depicts Dove Company's monthly warehouse rental cost. (Graph with straight horizontal line parallel to X axis) Based on the graph, the rental cost is a a. fixed cost. b. variable cost. c. mixed cost. d. The answer cannot be determined from the information provided. - ANSWER a. fixed cost. The line on the graph shows that the cost remains constant and does not change At lunchtime, Pete's Chilly Dogs sells hot dogs, chips, and soft drinks from five portable hot dog carts stationed on busy street corners. The depreciation cost on the carts is $1,000 per year for each cart. The company buys supplies (hot dogs, chips, cups, napkins) as needed. The 5 cart operators are each paid $8,000 per year plus 5% of sales revenue. Relative to the number of hot dog carts, the depreciation cost is a. mixed.