Identifying Cost Behavior Ivanov Inc. is trying to identify the cost behavior of the three costs shown below. Cost information is provided for six months.

Required

a. Calculate the cost per unit, and then identify how the cost behaves (fixed, variable, or mixed) for each of the three costs. Explain the reasoning behind your answers.

b. Why is it important to identify how costs behave with changes in activity?

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Cost 1 Cost 2 Cost 3 Costs Costs Costs Units Total per Total per Total per Month Produced Costs Unit Costs Unit Costs Unit 123456 8,000 $10,000 $24,000 $32,000 10,000 10,000 29,000 40,000 12,000 10,000 33,600 48,000 14,000 10,000 36,400 56,000 16,000 10,000 38,400 64,000 18,000 10,000 39,600 72,000