(Total cost determination with mixed cost) Accurate & Flonest Accounting Services pays $400 per month for a tax software license. In addition, variable charges average $15 for every tax return the firm prepares.

a. Determine the total cost and the cost per unit if the firm expects to prepare the following number of tax returns in March 1997: 1. 150 2. 300 3. 600

b. Why does the cost per unit change in each of the three cases above?

LO1