Nova Enterprises needs to analyze the behavior of three different costs over a period of three months Month Units Produced Total Cost P Cost per Unit P Total Cost Q Cost per Unit Q Total Cost R Cost per Unit R 1 1,000 $3,000 $5,000 $2,500 2 3,000 $3,000 $7,000 $7,500 3 500 $3,000 $4,500 $1,500 Required a Calculate the cost per unit for each type of cost and classify them as fixed, variable, or mixed Justify your answers b Explain the implications of cost behavior analysis for pricing strategies

Question: Nova Enterprises needs to analyze the behavior of three different costs over a period of three months. Month Units Produced Total Cost P Cost per

Nova Enterprises needs to analyze the behavior of three different costs over a period of three months.

Month	Units Produced	Total Cost P	Total Cost Q	Total Cost R
1	1,000	$3,000	$5,000	$2,500
2	3,000	$3,000	$7,000	$7,500
3	500	$3,000	$4,500	$1,500

Required: a. Calculate the cost per unit for each type of cost and classify them as fixed, variable, or mixed. Justify your answers.
b. Explain the implications of cost behavior analysis for pricing strategies.

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