In: Accounting
Consider the following information:
Unit sold | 20 | 40 | 60 | ||||||||||||
Total salary cost | $ | 6,000 | $ | 7,800 | $ | 9,200 | |||||||||
Total cost of goods sold | 14,000 | 28,000 | 42,000 | ||||||||||||
Depreciation cost per unit | $ | 120 | $ | 60 | $ | 40 | |||||||||
Based on the above information, select the correct statement.
Multiple Choice
Cost of goods sold is a mixed cost.
Salary cost is a mixed cost.
Depreciation cost is a variable cost.
If the company sells 20 units for $540 each, it will incur a loss of $200.