Question
DynamicTech is analyzing the cost behavior of three types of costs over three months. Month Units Produced Total Cost A Cost per Unit A Total
DynamicTech is analyzing the cost behavior of three types of costs over three months.
| Month | Units Produced | Total Cost A | Cost per Unit A | Total Cost B | Cost per Unit B | Total Cost C | Cost per Unit C |
|---|---|---|---|---|---|---|---|
| 1 | 1,000 | $2,000 | $3,500 | $5,000 | |||
| 2 | 2,500 | $2,000 | $4,500 | $12,500 | |||
| 3 | 500 | $2,000 | $2,500 | $2,500 |
Required: a. Determine the cost per unit for each type of cost and classify them as fixed, variable, or mixed. Provide explanations for your classifications.
b. Discuss how identifying cost behavior patterns can aid in cost control and reduction strategies.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Lets break down the problem into two parts and address each stepbystep Part A Cost Analysis First we need to calculate the cost per unit for each type ...
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Step: 2
Step: 3
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Elementary Statistics
Authors: Mario F. Triola
12th Edition
0321836960, 978-0321836960
