(Solution) - The Malabar Company specializes in imported novelty items from A -(2025 Original AI-Free Solution)

Paper Details

The Malabar Company specializes in imported novelty items from Asian countries such as Thailand, Indonesia, and China. The firm, headquartered in San Jose, California, has franchised over 70 stores in upscale malls throughout the United States. Currently, Malabar?s management is deciding whether to open a new store in a large mall in Chicago, Illinois.
The following table lists ten of Malabar?s costs:
Cost # Description of Cost
1 Sales commissions
2 Cost of merchandise
3 Salaries to sales staff
4 Salary to store manager
5 Display and stocking expenses
6 Advertising on national television
7 Advertising in local newspapers
8 Store cleaning and maintenance
9 Transportation of goods to stores
10 Central purchasing department

Required:
Classify each cost as being fixed (F), mixed (M), or variable (V) with respect to the sales volume in any given store. In addition, classify each cost as being controllable (C) or non-controllable (NC) for the decision regarding whether to open the new store in Chicago. Provide a brief explanation of your answers.