InnovateTech Inc is evaluating the cost behavior of three types of costs across three months Month Units Produced Total Cost TT Cost per Unit TT Total Cost UU Cost per Unit UU Total Cost VV Cost per Unit VV 1 1,800 $3,600 $4,800 $7,200 2 3,600 $3,600 $6,400 $14,400 3 900 $3,600 $3,200 $3,600 Required a Calculate the cost per unit for each type of cost and classify them as fixed, variable, or mixed Explain your classifications b Discuss the impact of cost behavior understanding on strategic planning and decision making

Question: InnovateTech Inc. is evaluating the cost behavior of three types of costs across three months. Month Units Produced Total Cost TT Cost per Unit TT

InnovateTech Inc. is evaluating the cost behavior of three types of costs across three months.

Month	Units Produced	Total Cost TT	Total Cost UU	Total Cost VV
1	1,800	$3,600	$4,800	$7,200
2	3,600	$3,600	$6,400	$14,400
3	900	$3,600	$3,200	$3,600

Required: a. Calculate the cost per unit for each type of cost and classify them as fixed, variable, or mixed. Explain your classifications.
b. Discuss the impact of cost behavior understanding on strategic planning and decision-making.

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