Delivery costs at Hernandez, Inc. appear below for specific months of operations: Month Amount Units Produced March $20,000 16,000 April $18,000 12,000 Which type of cost are delivery costs at Hernandez?1. Mixed2. Variable3. Fixed

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Business

Moises Huber

24 November, 21:16

Delivery costs at Hernandez, Inc. appear below for specific months of operations: Month Amount Units Produced March $20,000 16,000 April $18,000 12,000 Which type of cost are delivery costs at Hernandez?1. Mixed2. Variable3. Fixed

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Answers (1)

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Zack Simmons · Answer 1

2. Variable

Explanation:

Delivery costs at Hernandez, Inc are variable costs because they depend on the level of output.

As it can be seen, in March, the units produced where 16,000, and the delivery costs were $20,000. However, in April, the units produced fell to 12,000, and the delivery costs also fell accordingly, to $18,000.