EcoManufacture Ltd needs to assess the cost behavior of three different costs over a period of three months Month Units Produced Total Cost WW Cost per Unit WW Total Cost XX Cost per Unit XX Total Cost YY Cost per Unit YY 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 WW Cost

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

Month	Units Produced	Total Cost WW	Total Cost XX	Total Cost YY
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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