EXHIBIT 11.14 Examples of Mixed Costs Page 411 The Relevant Range Suppose SPI, the rock concert promoter mentioned earlier, must pay $5,000 to rent a concert hall with a seating capacity of 4,000 people. Is the cost of the concert hall fixed or variable? Since total cost remains unchanged
EXHIBIT 11.15 Cost Behavior Relative to Number of Concerts
CHECK YOURSELF 11.4 Is the compensation cost for managers of Pizza Hut Restaurantsa fixed cost or a variable cost?
Page 412
DETERMINING THE BREAK-EVEN POINT
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- Spring '17
- Accounting, Operating Leverage, SPI
