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20. Identifying Cost Behavior. Mountainside Company is trying to identify the cost behavior of the three costs that follow. Cost information is provided for
20. Identifying Cost Behavior. Mountainside Company is trying to identify the cost behavior of the three costs that follow. Cost information is provided for three months. Cost A Cost B Cost C Month Units Total Produced Costs Cost per Unit Total Cost per Total Cost per Costs Unit Costs Unit 1 1,500 $1,500 $4,500 $3,000 2 3,000 1,500 5,250 6,000 3 750 1,500 3,750 1,500 Required: a. Calculate the cost per unit, and then identify how the cost behaves for each of the three costs (fixed, variable, or mixed). Explain the reasoning for your answers. b. How does identifying cost behavior patterns help managers?
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