24. Identifying Cost Behavior. Zhang Corporation is trying to identify the cost behavior of the three costs shown. Cost information is provided for six months. Cost 1 Cost 2 Cost 3 Month Units Produced Total Costs Cost per Unit Total Costs Cost per Unit Total Costs Cost per Unit 18,000 $36,000 $19,800 $5,000 16,000 32,000 19,200 5,000 W 14,000 28,000 18,200 5,000 12,000 24,000 16,800 5,000 5 10,000 20,000 14,500 5,000 6 8,000 16,000 12,000 5,000 Required: 1. Calculate the cost per unit, and then identify how the cost behaves (fixed, variable, or mixed) for each of the three costs. Explain the reasoning behind your answers. 2. Why is it important to identify how costs behave with changes in activity? 25. Account Analysis. Baker Advertising Incorporated would like to estimate costs associated with its clients on an annual basis. Assume costs for supplies and advertising staff are variable costs. The accounting records indicate the following costs were incurred last year for 100 clients: Supplies $ 20,000 Advertising staff wages (hourly employees) $170,000 Manager salary $ 90,000 Building rent $ 56,000Required: 1. Use account analysis to estimate total fixed costs per year, and the variable cost per unit. State your results in the cost equation form Y = f + vX by filling in the dollar amounts for fand v. 2. Estimate the total costs for this coming year assuming 120 clients will be served. 1