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  3. question 5 1. zuppa loren operates a large store i

QUESTION 5 1. Zuppa Loren operates a large store in Knysna. The store has both...

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QUESTION 5 1. Zuppa Loren operates a large store in Knysna. The store has both a film (video/DVD) section and a music (compact discs and tapes) section. Zuppa Loren reports revenues for the film section separately from the music section. They have the following cost items: Annual salary paid to a film distributor Electricity costs of Zuppa Loren store (single bill covers entire store) Costs of films purchased for sale to customers Subscription to Video-Novo magazine E Leasing of computer software used for financial budgeting at Zuppa Loren store Cost of popcorn provided free to all customers of Zuppa Loren G Earthquake insurance policy for Zuppa Loren store Freight-in costs of films purchased by Zuppa Loren B D F H Required: Fill in the table below in order to classify each of the cost items given as: Direct or indirect (D or I) costs with respect to the film section. Variable or fixed (vor F) costs with respect to how the total costs of the film section change as the number of films sold changes. Dori Vor F Cost Item B D E F ITIL G H

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