BrightStar Inc needs to evaluate the behavior of three different costs over three months Month Units Produced Total Cost X Cost per Unit X Total Cost Y Cost per Unit Y Total Cost Z Cost per Unit Z 1 2,500 $5,000 $7,500 $10,000 2 5,000 $5,000 $10,000 $20,000 3 1,250 $5,000 $5,000 $5,000 Required a Calculate the cost per unit for each cost and determine whether each cost is fixed, variable, or mixed Justify your answers b Explain how understanding cost behavior can influence managerial decisions regarding production levels

Question: BrightStar Inc. needs to evaluate the behavior of three different costs over three months. Month Units Produced Total Cost X Cost per Unit X Total

BrightStar Inc. needs to evaluate the behavior of three different costs over three months.

Month	Units Produced	Total Cost X	Total Cost Y	Total Cost Z
1	2,500	$5,000	$7,500	$10,000
2	5,000	$5,000	$10,000	$20,000
3	1,250	$5,000	$5,000	$5,000

Required: a. Calculate the cost per unit for each cost and determine whether each cost is fixed, variable, or mixed. Justify your answers.
b. Explain how understanding cost behavior can influence managerial decisions regarding production levels.

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Cost Behavior Analysis Lets start by calculating the cost per unit for costs X Y and Z for each month Then we will determine whether each cost is fixe... View full answer

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