1. Based on the following cost data, what conclusions can you make about the costs of Product A and Product B?

   	Total Cost
   Production:	Product A				Product B
   10 units	$	100				?
   100 units	$	1,000				?
   1,000 units	$	10,000				?
   	Cost per Unit
   Production:	Product A				Product B
   10 units		?			$	10,000
   100 units		?			$	1,000
   1,000 units		?			$	100

   	A.	The costs of Product A and Product B are both variable costs.
   	B.	The costs of Product A and Product B are both mixed costs.
   	C.	The cost of Product A is a fixed cost and the cost of Product B is a variable cost.
   	D.	The cost of Product A is a variable cost and the cost of Product B is a fixed cost.

6 points

QUESTION 11

1. In year 1 Frodo Company has variable costs of $80 per unit, total fixed costs of $200,000, and a break-even point of 5,000 units. If the company raises the sales price per unit by $10 the following year, how many units must Frodo Company sell to break even in Year 2?

   	A.	3,000 units
   	B.	4,000 units
   	C.	6,000 units
   	D.	5,000 units