TechGear Inc is reviewing its cost structure for three types of costs across three months Month Units Produced Total Cost A Cost per Unit A Total Cost B Cost per Unit B Total Cost C Cost per Unit C 1 1,200 $2,400 $3,600 $4,800 2 2,400 $2,400 $4,800 $9,600 3 600 $2,400 $2,400 $2,400 Required a Determine the cost per unit for each cost and classify them as fixed, variable, or mixed Provide justifications for your classifications b Discuss how the classification of costs can impact budgeting and forecasting

Question: TechGear Inc. is reviewing its cost structure for three types of costs across three months. Month Units Produced Total Cost A Cost per Unit A

TechGear Inc. is reviewing its cost structure for three types of costs across three months.

Month	Units Produced	Total Cost A	Total Cost B	Total Cost C
1	1,200	$2,400	$3,600	$4,800
2	2,400	$2,400	$4,800	$9,600
3	600	$2,400	$2,400	$2,400

Required: a. Determine the cost per unit for each cost and classify them as fixed, variable, or mixed. Provide justifications for your classifications.
b. Discuss how the classification of costs can impact budgeting and forecasting.

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