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...

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.

1. Building rent.


2. Toys.


3. Compensation of the office manager, who receives a salary plus a bonus based on the number of students enrolled.


4. Afternoon snacks.


5. Lawn service contract at $200 per month.


6. Holly’s salary.


7. Wages of afterschool employees.


8. Drawing paper for student artwork.


9. Straight-line depreciation on furniture and playground equipment.


10. The fee paid to a security company for monthly service.