Unformatted text preview: Problem 2-20A (continued) c. Trade Shows Attended (a) 1 2 3 4 5 Cost of booth rental (a x $7,500) $7,500 $15,000 $22,500 $30,000 $37,500 The cost of booth space is variable. d. The additional cost is $40 ÷ 50 units = $0.80 per unit. The cost would be treated as a variable cost for decision making purposes. While it is not purely proportional, its behavior pattern closely approximates a variable cost pattern....
View Full Document
- Fall '08
- Managerial Accounting, booth space