DEF Corporation has provided the following data for its production costs 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 1,800 $7,200 $9,000 $5,400 2 3,600 $7,200 $18,000 $10,800 3 5,400 $7,200 $27,000 $16,200 Requirements a Calculate the cost per unit for each cost b Classify each cost as fixed, variable, or mixed and justify your classification c Describe the influence of variable costs on operating income d Explain the significance of fixed costs in financial stability

Question: DEF Corporation has provided the following data for its production costs: Month Units Produced Total Cost G Cost per Unit G Total Cost H Cost

DEF Corporation has provided the following data for its production costs:

Month	Units Produced	Total Cost G	Total Cost H	Total Cost I
1	1,800	$7,200	$9,000	$5,400
2	3,600	$7,200	$18,000	$10,800
3	5,400	$7,200	$27,000	$16,200

Requirements:a. Calculate the cost per unit for each cost. b. Classify each cost as fixed, variable, or mixed and justify your classification. c. Describe the influence of variable costs on operating income. d. Explain the significance of fixed costs in financial stability.

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