9. Company A's total rent for the workshop varies based on the production output, shown as below: Output and Rent O 100,000 80,000 Total Rent O 60,000 40,000 O 0 1,000 2,000 3,000 4,000Which of the following statements is correct? O When the company's capacity is within 2,000 units, the rental cost is a fixed cost When the company's capacity is within 3,000 units, the rental cost is a step cost O When the company's capacity is within 1,000 units, the rental cost is a variable cost O When the company's capacity is within 3,000 units, the rental cost is a fixed cost Incorrect Incorrect. When the capacity expands to over 1,000 units, the rental cost becomes a step cost that is fixed within a certain range of activity, and increases as activity increases to a new range of activity. You may review by returning to the "Cost Behavior" video.10. Company A's total royalty expenses for a specific product vary based on the total revenue (dollars in thousand), shown as below: Royalty Expenses based on Revenue 300,000 O 200,000 Royalty Expenses O 100,000 0 1,000 2,000 3,000 4,000 RevenueWhich of the following statements is correct? O When the company's revenue is within 2,000, the royalty expenses are step costs O The variable cost per dollar revenue when the company's revenue is within the range 1,000-2,000 is smaller than that when revenue is within the range 2,000-3,000 O When the company's revenue is $1,500, the royalty expenses are greater than 150,000 O The variable cost per dollar revenue is fixed, regardless of where the revenue range lies X Incorrect Incorrect. Step costs are fixed within a certain range of activity, and increase as activity increases to a new range of activity. In this case, royalty expenses are variable within any range of revenue and therefore by definition are not step costs. You may review by returning to the "Using a Line to Represent Cost Behavior" video.11. Below is a scatterplot of observations, where costs are on the vertical, or y-axis, and number of units are on the o r horizontal, or xaxis. Costs vs. Units Cost Unit Estimate cost functions using scatter plots. Which ofthe following statements is correct? 0 The costs are variable costs 0 When unit is 18, the total costs are estimated to be 36. O The costs are mixed costs. Total xed cost is 5. 6) When the total costs are 35, the units are estimated to be 17.5. 6) Incorrect Incorrect. You should not forget the fixed costs the intercept with yaxis is not zero. You may review by returning to the \"Estimating Cost Functions Using Scatter Plots" Video