Cromwell Furniture Company manufactures sofas for distribution to several major retail chains. It...
Question:
Cromwell Furniture Company manufactures sofas for distribution to several major retail chains. It has incurred costs in 'purchase of janitorial supplies, $2,500 per month' for the production and sale of sofas. Classify the cost as either fixed, variable or mixed. Justify your answer.
Janitorial supplies:
Janitorial supplies are the things which are used in cleaning a particular place. Examples of janitorial supplies are broomsticks, mop, vacuum cleaner, wipers, dustpan, dustbins, brushes, protective gloves, etc.
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View this answerCost incurred on purchasing of janitorial supplies, for $2500 per month for the production and sales of sofas is FIxed cost. The cost will be same...
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Fixed Costs: Definition, Formula & Examples
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Chapter 3 / Lesson 14
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What is a fixed cost? Learn the fixed cost definition and how to calculate it using the fixed cost formula. Compare fixed vs. variable costs and see fixed costs examples in business.
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