QUESTION 18

1. Given the cost behavior in the table below, which of the three costs is a variable cost?

   		Cost 1		Cost 2		Cost 3
   Month	Units Produced	Total Costs	Cost per Unit	Total Costs	Cost per Unit	Total Costs	Cost per Unit
   1	50	$100	$2.00	$200	$4.00	$200	$4.00
   2	75	200	$2.67	$200	$2.67	$300	4.00

		None of the three are variable costs
		Cost 3
		Cost 2
		Cost 1