Question: a . What are fixed costs? Assume that the linear relationship assumption is appropriate within the relevant range of 0 to 1 4 , 0
aWhat are fixed costs? Assume that the linear relationship assumption is appropriate within the relevant range of to units. The company uses the highlow method to separate total costs by cost behavior.
bWhat is the contribution margin per unit?
cIs it appropriate to use this information to project operating income at units Why or why not?
dFor which decisions is this information useful when costs are broken down by cost behavior?
eWhat other internal and external information would be relevant to understand profit predictions, pricing, performance evaluation, and customer demand?
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