07 Feb Cost classification Percy’s is a small hamburger s
Cost classification Percy’s is a small hamburger shop catering mainly to students at a nearby university. It sells hamburgers and vegetarian burgers and is open for business from 11:00 A.M. until 11:00 P.M., Monday through Friday. The owner, Percy Luk, employs two cooks, one server, and a parttime janitor. Because there is no space for dining inside the shop, all orders are takeout orders. Moreover, almost all orders are for one burger. Percy prepared the following partial list of costs incurred last month:Burger ingredientsCooks’ wagesServer’s wagesJanitor’s wagesDepreciation on cooking equipmentPaper supplies (wrapping, napkins, and bags)RentAdvertisement in local newspaperRequiredClassify these costs as variable or fixed with respect to the number of burgers served.
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