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

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

Month	Units Produced	Total Cost QQ	Total Cost RR	Total Cost SS
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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