Philadelphia Acoustics builds innovative speakers for music and home theater systems. Identify each cost as variable (V), fixed (F), or mixed (M), relative to number of speakers produced and sold 1. Units of production depreciation on routers used to cut wood enclosures. 2. Wood for speaker enclosures. 3. Patents on crossover relays. 4. Total compensation to salesperson who receives a salary plus a commission based on meeting sales goals 5. Crossover relays . 6. Straight-line depreciation on manufacturing plant . 7. Grill cloth. 8. Cell phone costs of salesperson 9. Glue 10. Quality inspector's salary

Please see answer in explanation column

Explanation:

1. Units of production depreciation on routers used to cut wood enclosures.

it is a Variable cost since the depreciation will depend on the number of wood enclosures to be cut

2. Wood for speaker enclosures (V)Variable Cost since the cost of wood for speaker closure wll vary or depend on number of units to be produced.

3. Patents on crossover relays.(F) Fixed cost because the cost of Patents on crossover remains the same for number of speakers produced.

4. Total compensation to salesperson who receives a salary plus a commission based on meeting sales goals--- (M) Mixed cost arising from his or her fixed salary plus commison which may vary depending on sales goals.

5. Crossover relays---V- Variable costs because cost of crossover relays depends on units produced.

6. Straight-line depreciation on manufacturing plant . --(F)-Fixed cost because Straight-line depreciation on manufacturing plan is usually the same over a period of time.

7. Grill cloth--(V) Variable cost because the cloth used for grlling will depend on units produced

8. Cell phone costs of salesperson---(M)Mixed cost because the cost of cellphone is fixed but the  wth expenses on calls  will vary from salesperson to salesperson

9. Glue -- (V)Variable cost because the use of glue will depend on number of units produced

10. Quality inspector's salary--- (F)Fixed cost as his salary is the same for every month except he is promoted which may come with new salary increase.

Note  that

variable (V) costs are costs that depend and change depending on the units of production.

fixed (F) costs are cost that do not change but remain constant with change in units of production.

Mixed (M) costs have both characteristics of fixed and variable costs combined.

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