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Product Cost Variable or Fixed 1. Depreciation on office equipment 2. Rubber core of football products 3. Wages of custodial workers 4. Boxes for packaging footballs for sale 5. Depreciation (straight-line) on leather-cutting equipment 6. Office manager's annual salary

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Answer:

Product Cost                                               Variable or Fixed

1. Depreciation on office equipment                    Fixed

2. Rubber core of football products                     Variable

3. Wages of custodial workers                             Fixed

4. Boxes for packaging footballs for sale            Variable

5. Depreciation on leather-cutting equipment    Fixed

6. Office manager's annual salary                        Fixed

Explanation:

Variable costs are those will vary will the change in sale or activity level e.g material cost, labor cost etc.

Fixed costs are those which remains fix and does not vary with the change in sale or activity level.

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