Question
EcoManufacture Ltd. needs to assess the cost behavior of three different costs over a period of three months. Month Units Produced Total Cost G Cost
EcoManufacture Ltd. needs to assess the cost behavior of three different costs over a period of three months.
| Month | Units Produced | Total Cost G | Cost per Unit G | Total Cost H | Cost per Unit H | Total Cost I | Cost per Unit I |
|---|---|---|---|---|---|---|---|
| 1 | 1,500 | $3,000 | $5,000 | $4,500 | |||
| 2 | 3,000 | $3,000 | $6,500 | $9,000 | |||
| 3 | 750 | $3,000 | $4,000 | $2,250 |
Required: a. Determine the cost per unit for each cost and classify them as fixed, variable, or mixed. Justify your answers.
b. Explain how knowledge of cost behavior can benefit pricing and budgeting processes.
Step by Step Solution
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Step: 1
Solution Part a Determine the cost per unit for each cost and classify them as fixed variable or mixed Justify your answers To determine the cost per ...
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Chemistry A Molecular Approach
Authors: Nivaldo Tro
5th Edition
0134874374, 978-0134874371
