Part 1 Question 1 A company observed a decrease in the cost per unit. All other things being equal, which of the following is probably true? A. The company is studying a variable cost, and total volume has increased. B. The company is studying a variable cost, and total volume has decreased. C. The company is studying a fixed cost, and total volume has increased. D. The company is studying a fixed cost, and total volume has decreased. E. The company is studying a fixed cost, and total volume has remamed constant. Question 3. The following data relate to the Lisle Company for May and August of the current year: May August Maintenance hours 25,000 29,000 Maintenance cost $1,175,000 $1,247,000 May and August were the lowest and highest activity levels, and Lisle uses the high-low method to analyze cost behavior. Which of the following statements is true? A. The variable maintenance cost is $43 per hour. B. The variable maintenance cost is $45 per hour. C. The variable maintenance cost is $47 per hour. D. The fixed maintenance cost is $725,000 per month. E. More than one of the above statements is true. Question 2 Lewisa Company needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows. Machine Hours Utilities Month Worked Cost April 4,500 $ 9,560 May 4.200 9.440 June 6,500 10,725 July 7,000 11,400 Lewisa anticipates producing 5,000 units in August, each unit requiring 1.5 hours of machine time. The company uses the high-low method to analyze costs. Required: A. Calculate the variable and fixed components of the utilities cost. B. Using the data calculated above, estimate the utilities cost for August. C. Compare the high-low method versus the visual-fit method with respect to (1) number of