1.- Wazy Corporation's relevant range of activity is 5,000 units to 15,000 units. When it produces and sells 1,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	7.00
Direct labor	$	4.00
Variable manufacturing overhead	$	3.00
Fixed manufacturing overhead	$	3.50
Fixed selling expense	$	1.10
Fixed administrative expense	$	0.80
Sales commissions	$	1.00
Variable administrative expense	$	1.00

If 1,000 units are sold, the variable cost per unit sold is closest to:

2. Describe Fixed Cost behavior (per unit and in total) and give your own example.

3. Describe Variable Cost behavior (per unit and in total) and give your own example.

4. Define Period Cost, describe how/when they are expensed AND give your own example.