Question
MicroGear Inc. is examining the behavior of three different costs over three months. Month Units Produced Total Cost J Cost per Unit J Total Cost
MicroGear Inc. is examining the behavior of three different costs over three months.
| Month | Units Produced | Total Cost J | Cost per Unit J | Total Cost K | Cost per Unit K | Total Cost L | Cost per Unit L |
|---|---|---|---|---|---|---|---|
| 1 | 2,200 | $4,400 | $6,600 | $8,800 | |||
| 2 | 4,400 | $4,400 | $8,800 | $17,600 | |||
| 3 | 1,100 | $4,400 | $4,400 | $4,400 |
Required: a. Calculate 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 assist in cost management and decision-making.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Solution Lets first calculate the cost per unit for each type of cost across the three months Month Units Produced Total Cost J Cost per Unit J Total ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
