Problem: Identifying Cost Behavior
Hoover's Kitchen, a fast-food restaurant co., operates a chain of restaurants across the nation. Each restaurant employs 8 people; one is a manager paid a salary plus a bonus equal to 3% of sales. Other employees, two cooks, one dishwasher, and four waitresses are paid salaries. Each manager is budgeted $3,000 per month for advertising cost. Classify each of the following costs incurred by the co. as fixed, variable, or mixed.
a. Manager's compensation relative to the number of customers.
b. Waitresses' salaries relative to the number of restaurants.
c. Advertising costs relative to the no. of customers for a particular restaurant.
d. Rental costs relative to the no. of restaurants.
e. Cooks' salaries at a particular location relative to the number of customers.
f. Cost of supplies (cups, plates, spoons, etc.) relative to the no. of customers.