3. Case Exhibit 4 presents individual costs at a two levels of production/sales: 1,200 units and 1,900 units. For each cost, indicate whether it is a VC, an FC, or a mixed cost (MC) that contains both a variable and fixed component.

4. From your analysis in question 3, choose one VC, one FC, and one MC. For each, calculate the per-unit cost at both the 1,200- and 1,900-unit levels, indicate whether the per-unit cost stays the same, increases, or decreases as volume increases, and provide an explanation.

Exhibit 3 JW Sports Supplies (A) Description of Costs Exhibit 4 JW Sports Supplies (A) Monthly Costs at Different Volume Levels