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Problem 1: Identify each of the following costs incurred by Universal Sports Exchange in terms of its cost behavior-variable, fixed, mixed, or step.
Required
(a) Monthly sales staff payroll of $650 plus 6% sales commission on jerseys
(b) $100 monthly rental for credit card processing equipment
(c) Cost of goods sold of $14.80 per jersey
(d) The cost of price tags attached to each jersey
(e) Inventory insurance that costs $2 per $1,000 of sales
(f) Website hosting cost of $25 per month
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