3. In the equation y=a+bx, how do you express the variable cost per unit?

a. a/x

b. b/x

c. x/x

d. y/x

e. None of the above

4. In the equation y=P500+P3(500), what is the average unit cost?

a. P2

b P3

c. P4

d. P5

e. None of the above

5. In the first six months of 2022, De Jesus Company, the lowest electricity cost was in June at P39,000 with 3,000 units produced while the highest electricity cost was in January at P60,000 with 6,000 units produced. What is the expected electricity cost at 7,000 units?

a. P52,500

b P70,500

c. P75,000

d. P97,500

e. None of the above

6. In the first six months of 2022, San Pedro Company, the lowest electricity cost was in June at P39,000 with 3,000 units produced while the highest electricity cost was in January at P60,000 with 6,000 units produced. What is the expected fixed cost per unit at 8,000 units?

a. P13.00

b. P10.00

c. P 9.25

d. P 7.00

e. None of the above

7. Which of the following statements is correct?

a. As the volume increases, total fixed costs remain constant in relevant range while cost per unit increases.

b. As the volume decreases, the total variable costs decreases and the cost per unit decreases.

c. As the volume increases, the total fixed costs increases while the cost per unit decreases.

d. As the volume increases, the total variable costs increases while the cost per unit remain constant.

e. None of the above.