Question: Following are five graphs representing various cost behaviors. (1) Identify whether the cost behavior in each graph is mixed, step-wise, fixed, variable, or curvilinear. (2)
(1) Identify whether the cost behavior in each graph is mixed, step-wise, fixed, variable, or curvilinear.
(2) identify the graph (by number) that best illustrates each cost behavior:
(a) Factory policy requires one supervisor for every 30 factory workers;
(b) Real estate taxes on factory;
(c) Electricity charge that includes the standard monthly charge plus a charge for each kilowatt hour;
(d) Commissions to salespersons; and
(e) Costs of hourly paid workers that provide substantial gains in efficiency when a few workers are added but gradually smaller gains in efficiency when more workers areadded.
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