Question:Q10-1: Compare fixed, variable, and mixed costs.

Q10-2: What do we mean by a Relevant Range?

Q10-3: A professional services business has fixed costs of 150,000 and variable costs of 15 per hour. How much does average cost change between 12,000 or 15,000 units?

Q10-4: Use the following information to determine the breakeven in units, breakeven in , the number of units to get close to the Target Profit, and the amount of estimated from the unit sensitivity analysis:

Fixed costs= 240,000

Selling price per unit= 18.00

Variable costs per unit= 12.60

Target profit= 120,000

Q10-5: Looking at Q10-4above, if expected sales are 50,000 units what is the margin of safety?

Q10-6: BCD Inc sells its products for $12 each. The company's volume has remained unchanged for some time at 10,000 units per month although it has spare capacity. Production costs are $10 per unit including fixed costs which average $3 per unit for the production volume. A customer has requested a special order of 2,000 of BCD's products at a special price of $9. What should BCD do? Please show your work.