The table below shows the output, total costs and the cost inflation index for a business in
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The table below shows the output, total costs and the cost inflation index for a business in two periods.Cost behaviour patterns were the same in both periods.
The variable cost per unit at an inflation index of 1.08 will be:(a) $1.56(b) $1.45(c) $1.50(d) $1.62
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Total cost Output level Inflation index 12000 units 16000 units 1.05 $21000 $26 780 1.03
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