Cafe produces one of the best meat products in north Texas. The company's controller compiled...
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Accounting
Cafe produces one of the best meat products in north Texas. The company's controller compiled the following information by analyzing the accounting records:
Meat costs the company $3.25 per pound of sausage produced.
Compensation of production employees is $2.25 per pound of sausage produced.
Supervisory salaries total $23,000 per month.
The company incurs utility costs of $9,000 per month plus $0.35 per pound of sausage produced.
Insurance and property taxes average $6,400 per month.
Classify each cost as variable, fixed, or semi variable.
Write a formula to express the behavior of the firm's production costs. (Use the form Y = a + bX, where X denotes the quantity of sausage produced.)
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