Spartan Corporation observed that when 25,000 units were sold, a particular cost amounted to $75,000, or $3.00
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Spartan Corporation observed that when 25,000 units were sold, a particular cost amounted to $75,000, or $3.00 per unit. When volume increased by 10%, the cost totaled $82,500 (i.e., $3.00 per unit). The cost that Spartan is studying can best be described as a:
a. Fixed cost
b. Variable cost
c. Mixed cost
d. Sunk cost
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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