PR 6-35 (Static) Cost Behavior Patterns in a Variety of Settings; International Issues (LO 6-1, 6-2)
For each of the cost items described below, choose the graph (a through I) that best represents it.
The salary costs of the shift supervisors at a truck depot. Each shift is eight hours. The depot operates with one, two, or three shifts at various times of the year.
The salaries of the security personnel at a factory. The security guards are on duty around the clock.
The wages of table-service personnel in a restaurant. The employees are part-time workers who can be called upon for as little as two hours at a time.
The cost of electricity during peak-demand periods is based on the following schedule.
Up to 9,500 kilowatt-hours (kwh) ,$0.10 per kilowatt-hours
Above 9,500 kilowatt-hours $0.13 per kilowatt-hours
The price schedule is designed to discourage overuse of electricity during periods of peak demand.
The cost of sheet metal used to manufacture automobiles.
The cost of utilities at a university. For low student enrollments, utility costs increase with enrollment, but at a decreasing rate. For large student enrollments, utility costs increase at an increasing rate.
The cost of online back-up storage at a rate of $2.50 per gigabyte, up to 50 gigabytes, beyond which storage is unlimited, at no additional cost.
The cost of the nursing staff in a hospital. The staff always has a minimum of nine nurses on duty. Additional nurses are used depending on the number of patients in the hospital. The hospital administrator estimates that this additional nursing staff costs approximately $195 per patient per day.
The cost of chartering a private airplane. The cost is $390 per hour for the first three hours of a flight. Then the charge drops to $280 per hour.
Under a licensing agreement with a South American import/export company, your firm has begun shipping machine tools to several countries. The terms of the agreement call for an annual licensing fee of $100,000 to be paid to the South American import company if total exports are under $5,000,000. For sales in excess of $5,000,000, an additional licensing fee of 10 percent of sales is due.
Your winery exports wine to several Pacific Rim countries. In one nation, you must pay a tariff for every case of wine brought into the country. The tariff schedule is the following:
able[[0 to 5,500 cases per year,$12 per case],[5,501 to 11,000 cases per year,$15 per case],[Above 11,000 cases per year,$20 per case]]
For each of the cost items described below, choose the graph (a through I) that best represents it.
1. The salary costs of the shift supervisors at a truck depot. Each shift is eight hours. The depot operates with one, two, or three shifts at various times of the year. 2. The salaries of the security personnel at a factory.The security guards are on duty around the clock
two hours at a time. 4.The cost of electricity during peak-demand periods is based on the following schedule
Up to 9,500 kilowatt-hours kwh Above 9,500 kilowatt-hours
$ e.10 per kilowatt-hours $ e.13 per kilowatt-hours
The price schedule is designed to discourage overuse of electricity during periods of peak demand 5.The cost of sheet metal used to manufacture automobiles. 6.The cost of utilities at a university For low student enrollments,utility costs increase with enrollment,but at a decreasing rate.For large student enrollments,utility costs increase at an increasing rate.
additional cost.
8.The cost of the nursing staff in a hospital. The staff always has a minimum of nine nurses on duty.Additional nurses are used depending on the number of patients in the hospital.The hospital administrator estimates that this additional nursing staff costs approximately $195 per patient per day. 9. The cost of chartering a private airplane. The cost is $390 per hour for the first three hours of a flight. Then the charge drops to $280 per hour. 10.Under a licensing agreement with a South American import/export company,your firm has begun shipping machine tools to several countries.The terms of the agreement call for an annual licensing fee of $100,000 to be paid to the South American import company if total exports are under $5,000,000.For sales in excess of $5,000,000,an additional licensing fee of 10 percent of sales is due. 11. Your winery exports wine to several Pacific Rim countries. In one nation,you must pay a tariff for every case of wine brought into the country The tariff schedule is the following
to 5,500 cases per year 5,501 to 11,000 cases per year Above 11,000 cases per year
$ 12 per case $ 15 per case $20 per case
