Question: 56-1 Identify cost behavior (Learning Objective 1) The following chart shows three different costs: Cost A, Cost B, and Cost C. For each cost, the

56-1 Identify cost behavior (Learning Objective 1) The following chart shows three different costs: Cost A, Cost B, and Cost C. For each cost, the chart shows the total cost and cost per unit at two different volumes within the same relevant range. Based on this information, identify each cost as fixed, variable, or mixed. Explain your answers. D ou WN 1 2 3 4 Cost A 5 Cost B 6 Cost C 7 At 4,000 units Cost per Total Cost Unit $ 42,000 $ 10.50 $ 60,000 $ 15.00 $ 32,000 $ 8.00 At 5,000 units Cost per Total Cost Unit $ 50,000 $ 10.00 $ 60,000 $ 12.00 $ 40,000 $ 8.00
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
