Business, 21.04.2020 20:28 23basu3

Each of Boggart’s production managers (annual salary cost, $45,000) can oversee 60,000 machine hours of manufacturing activity. Thus, if the company has 50,000 hours of manufacturing activity, one manager is needed; for 75,000 hours, two managers are needed; for 125,000 hours, three managers are needed; and so forth. Boggart’s salary cost can best be described as a:

1.variable cost.
2.semivariable cost.
3.step-variable cost.
4.fixed cost.
5.step-fixed cost.

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Each of Boggart’s production managers (annual salary cost, $45,000) can oversee 60,000 machine hours...

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