DynamicTech is analyzing the cost behavior of three types of costs over 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 1,000 $2,000 $3,500 $5,000 2 2,500 $2,000 $4,500 $12,500 3 500 $2,000 $2,500 $2,500 Required a Determine the cost per unit for each type of cost and classify them as fixed, variable, or mixed Provide explanations for your classifications b Discuss how identifying cost behavior patterns can aid in cost control and reduction strategies

Question: DynamicTech is analyzing the cost behavior of three types of costs over three months. Month Units Produced Total Cost A Cost per Unit A Total

DynamicTech is analyzing the cost behavior of three types of costs over three months.

Month	Units Produced	Total Cost A	Total Cost B	Total Cost C
1	1,000	$2,000	$3,500	$5,000
2	2,500	$2,000	$4,500	$12,500
3	500	$2,000	$2,500	$2,500

Required: a. Determine the cost per unit for each type of cost and classify them as fixed, variable, or mixed. Provide explanations for your classifications.
b. Discuss how identifying cost behavior patterns can aid in cost control and reduction strategies.

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