1. As production volume increases, describe how variable costs "behave: (a) on a total basis and (b) on a per unit basis. Explain. (2pts each)
2. As production volume increases, describe how fixed costs "behave": (a) on a total basis and (b) on a per unit basis. Explain. (2pts each)
3. Chucks mobile detailing business comes to you! He travels to his clients and details out of his truck at homes and offices. Identify each of the following costs as variable (V) or fixed (F), relative to the number of details performed. (1pt each)

a. Lease payment on detail truck

b. Car wax

c. Oil changes on detail truck

d. Depreciation on the detail equipment (using straight-line method)

e. Total wages paid to car washers who are paid by the hour

f. Annual registration on detail truck

g. Detail supplies such as hoses, scrub brushes, wash rags