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2. 3. Prepare an income statement for the upcoming year What cau ses the difference in income between the two methods? S6-17 Identify cost behavior

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2. 3. Prepare an income statement for the upcoming year What cau ses the difference in income between the two methods? S6-17 Identify cost behavior graph (Learning Objectives 1 & 2) - g are a series of cost behavior graphs. The total cost is shown on Followin axis and the volume (activity) is shown on the horizontal (x) axis. the vertical (y) 12 10 For each of the following situations, identify the graph that most closely represents the cost behavior pattern of the cost in that situation. Some graphs may be used more than once or not at all, a. Monthly factory equipment depreciation, straight-line method is used b. Monthly electric cost for a convenience store; $50 base monthly fee plus $.006 per kilowatt used Total salary costs for a craft supplies store; managers are paid a salary, and the other workers are paid by the hour c. d. Oil disposal fees for an automotive maintenance company. The oil disposal fee is based on two components: a $100 base fee plus a usage fee (to encourage reduction of waste): per barrel Up to 10 barre. barre$9 per barrel $13 per barrel More than 26 barrels

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