A1_MGT223H5S 2010 - MGT223H5S 2010 Assignment#1 Problem One...

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1 MGT223H5S 2010 Assignment #1 Problem One Cost Behaviour SuperTV Productions Inc. is a television production company. It pays a royalty fee for any music that they use in the TV shows that they make. All TV shows will have one (different) song that needs a royalty paid. SuperTV selected actors from all around the world and hired extras from the local area. All of the actors and extras have to stay on the set for the entire time when the show is being filmed. Extras are persons hired by the day to play a minor part, as a member of a mob or crowd. Both actors and extras are paid for the hours they work. But SuperTV also pays an administration charge for actors’ medical and dental plans and insurance. The directors are employees of SuperTV and love it from December to February when the company shuts down for a break. Each actor and extra is fed every 5 hours of working. The following is a list of the costs that were incurred during the 2,000 (total) hours that SuperTV was filming its 10 shows in July 2009. July is the prime outdoor filming month because it seldom rains and is not too hot.
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