A1_Solutions - MGT223H5S 2010 Assignment #1 Solution...

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1 MGT223H5S 2010 Assignment #1 Solution Problem One Cost Behaviour Required: 1. Which costs are classified as the following (no calculations required): a. Variable (per hour) Extras, Stage lighting b. Fixed Director costs/salary, equipment depreciation, royalties c. Mixed Actors, Supplies d. Step cost Food 2. The management has planned to film 800 hours and make 6 shows with an average of 3 actors and 2 extras for August 2009. Please calculate the cost of supplies, actors, and royalties for this month. (Hint: please use high-low method for mixed costs.) Supplies Cost formula of Supplies: August 2009 supplies cost = 1,900 + 650 *6 = $ 5,800 Actors
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2 Cost formula of Actors cost: August 2009 Actors cost = 100,000 + 800 * 3 * 250 = $ 700,000 Royalties 75,000 / 10 * 6 shows = $ 45,000 3. Calculate the total costs for July 2010 if the only difference (from July 2009) is that the number of actors and extras increases by 1 each per hour. Actors’ fees
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This note was uploaded on 12/02/2011 for the course ECON eco200 taught by Professor Wolfson during the Spring '11 term at University of Toronto- Toronto.

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A1_Solutions - MGT223H5S 2010 Assignment #1 Solution...

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