Variable, fixed, and mixed costs Holly’s DayCare has been in operation for several years. Consider…

Variable, fixed, and mixed costs Holly’s DayCare has been in operation for several years. Consider the following costs:

1. Building rent.

6. Holly’s salary.

2. Toys.

7. Wages of afterschool employees.

3. Salary of office manager, who also

8. Drawing paper for student art work.

receives a bonus based on number of

9. Straight-line depreciation of tables,

students enrolled.

chairs, and playground equipment.

4. Afternoon snacks.

10. Fee paid to security company for

5. Lawn service contract at $200 a month;

monthly service (contract includes up to

any extra work needed is billed at an

four responses in a month; responses

hourly rate based on the time needed to

over four in a month incur an additional

complete the job.

fee per response).

Requirement

1. Identify the costs as variable (V), fixed (F), or mixed (M).