It is time to develop a budget for marketing department activities for the next year. Your team is looking over the following costs.:
1. Office rent
2. Sales commissions
3. Promotional budget
4. Product development costs
5. Office supplies
The finance department has recently told you that you have $3,000 to spend on office supplies. You cannot go beyond this no matter what changes happen in the marketing department. Your salespeople get a flat 15% sales commission on anything they sell. With this in mind, which of these costs are variable costs?
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