PrimeWorks Co is assessing the cost behavior for three categories of costs across several months Month Units Produced Total Cost M Cost per Unit M Total Cost N Cost per Unit N Total Cost O Cost per Unit O 1 800 $1,600 $2,400 $3,200 2 1,600 $1,600 $3,200 $6,400 3 400 $1,600 $1,600 $1,600 Required a Determine the cost per unit for each cost and classify them as fixed, variable, or mixed Provide explanations for your classifications b Discuss the role of cost behavior understanding in operational efficiency

Question: PrimeWorks Co. is assessing the cost behavior for three categories of costs across several months. Month Units Produced Total Cost M Cost per Unit M

PrimeWorks Co. is assessing the cost behavior for three categories of costs across several months.

Month	Units Produced	Total Cost M	Total Cost N	Total Cost O
1	800	$1,600	$2,400	$3,200
2	1,600	$1,600	$3,200	$6,400
3	400	$1,600	$1,600	$1,600

Required: a. Determine the cost per unit for each cost and classify them as fixed, variable, or mixed. Provide explanations for your classifications.
b. Discuss the role of cost behavior understanding in operational efficiency.

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