EcoManufacture Ltd needs to assess the cost behavior of three different costs over a period of three months Month Units Produced Total Cost G Cost per Unit G Total Cost H Cost per Unit H Total Cost I Cost per Unit I 1 1,500 $3,000 $5,000 $4,500 2 3,000 $3,000 $6,500 $9,000 3 750 $3,000 $4,000 $2,250 Required a Determine the cost per unit for each cost and classify them as fixed, variable, or mixed Justify your answers b Explain how knowledge of cost behavior can benefit pricing and budgeting processes

Question: EcoManufacture Ltd. needs to assess the cost behavior of three different costs over a period of three months. Month Units Produced Total Cost G Cost

EcoManufacture Ltd. needs to assess the cost behavior of three different costs over a period of three months.

Month	Units Produced	Total Cost G	Total Cost H	Total Cost I
1	1,500	$3,000	$5,000	$4,500
2	3,000	$3,000	$6,500	$9,000
3	750	$3,000	$4,000	$2,250

Required: a. Determine the cost per unit for each cost and classify them as fixed, variable, or mixed. Justify your answers.
b. Explain how knowledge of cost behavior can benefit pricing and budgeting processes.

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