Sugarsweet Confections Inc. produces one of the best brands of all natural jam in Ontario. The following information was obtained through an analysis of the accounting records:
1. Raw materials and packaging (strawberries and sugar) cost the company $5.00 per jar produced.
2. Compensation of production employees is $6.00 per jar produced.
3. Supervisory salaries total $33,000 per month.
4. The company incurs utility costs of $8,000 per month plus $0.50 per jar produced.
5. Insurance and property taxes average $7,000 per month.
Required:
A. Classify each cost as variable, fixed, or semi-variable.
B. Write a formula to express the behaviour of the firm's production costs. (Use the form Y = a + bX, where X denotes the quantity of jam produced.)

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The Answer of Sugarsweet Confections Inc. produces one of the best brands of all natural jam in Ontario. The following information was obtained through an analysis of the accounting records:
1. Raw materials and packaging (strawberries and sugar) cost the company $5.00 per jar produced.
2. Compensation of production employees is $6.00 per jar produced.
3. Supervisory salaries total $33,000 per month.
4. The company incurs utility costs of $8,000 per month plus $0.50 per jar produced.
5. Insurance and property taxes average $7,000 per month.
Required:
A. Classify each cost as variable, fixed, or semi-variable.
B. Write a formula to express the behaviour of the firm's production costs. (Use the form Y = a + bX, where X denotes the quantity of jam produced.)