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A company wants to determine its marketing costs for budgeting purposes. Activity measures and costs incurred for 4 months of the current year are presented in the table below. Advertising is considered to be a discretionary cost. Salespersons are paid monthly salaries plus commissions. The sales force was increased from 20 to 21 individuals during the month of May.

	March	April	May	June
Activity measures:
Sales orders	2,000	1,800	2,400	2,300
Units sold	55,000	60,000	70,000	65,000
Dollar sales	$1,150,000	$1,200,000	$1,330,000	$1,275,000
Marketing costs:
Advertising	$ 190,000	$ 200,000	$ 190,000	$ 190,000
Sales salaries	20,000	20,000	21,000	21,000
Commissions	23,000	24,000	26,600	25,500
Shipping costs	93,000	100,000	114,000	107,000
Total costs	$ 326,000	$ 344,000	$ 351,600	$ 343,500

In relation to the dollar amount of sales, which of the following cost classifications is appropriate for advertising and sales salaries costs?
	Advertising Sales Salaries
A.	Fixed cost Variable cost
B.	Fixed cost Fixed cost
C.	Variable cost Fixed cost
D.	Mixed cost Mixed cost

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