Question
(1) A particular cost is $10,000 in total when 50 units are made. Complete the following table, indicating what the cost would be if production
(1) A particular cost is $10,000 in total when 50 units are made. Complete the following table, indicating what the cost would be if production is increased to 200 units:
Cost per Unit Cost in total
If this cost is a variable cost .......................... .......................
If this cost is a fixed cost ........................... .......................
(2) What is the effect of an increase in activity on the following items?
a. Total variable costs.
b. variable cost per unit of activity.
c. total fixed costs.
d. fixed costs per unit of activity.
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