15. If the level of activity (X) increases, within the relevant range of activity (ie. pizza example in class): a. Variable cost per unit will increase b. Total variable costs will increase c. Total fixed costs will increase d. Total costs will actually decrease e. Fixed cost per unit will increase t the term the that best matches each of the Note: If six or more (ofthe ten) matches is correct, 1pt (fiull credit) is earned List # Description List of terms A. Costs composed of both fixed and variable components. 1.Activity level B. A cost that remains constant in total when total volume changes 2. Contribution Margin C. The factor that causes (or drives) changes in costs. 3. Cost behavior D. A cost that changes in total in direct proportion to changes in 4. Cost structure volume E. The way a cost reacts (changes) relative to changes in a measure of5.Fired cost activity F. A condition in which a percentage change in revenue will produce a | , High-low method larger percentage change in net income or loss. G. A method of estimating the fixed and variable components of a 7.Mired costs mired cost where data are plotted on a graph and a line is visually fit to the data H. The difference between a company's sales revenue and its variable8.Operating leverage costs. L A company's cost mi or relative proportion of variable and fixed 9.Scattergraph method costs to total costs. J. A method of estimating the ficed and variable components of a 10. Variable cost mired cost using two data observations. 17. Venturella& Venturella, Inc. produces quality hats for fashion-conscious students. During 2018, its highest and lowest production levels occurred in April and October, respectively. 6,000 units at a total cost of $120,000. In October, it produced 2,000 units at a total cost of $80,000. Using the high/low method of estimating costs, the average variable cost of producing a hat would be: In April, it produced a. $12.00 b. $25.71 c. $34.29 d $46.80 e. None of the above. The coect answer is: 18. Based upon the high-low analysis above, and after determining the expected fixed cost associated with this fact pattem, the "Cost Formula" (expressed as Y-AbX) to be used would be (show all work below: Total Cost (Y) 19. Using your cost formula determined above, what would the total expected cost be if company management plans to produce 3,110 units next month? Show your work and circle your