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A company has the following costs and revenues related to a product. Selling price 114.00 Labour (@ 8.50 per hour) 42.50 Raw materials (@2.80 per
A company has the following costs and revenues related to a product. Selling price 114.00 Labour (@ 8.50 per hour) 42.50 Raw materials (@2.80 per kg.) 25.20 Variable overheads 8.80 Fixed cost per unit 7.50 Profit per unit 30.00 What is the contribution per labour hour? Which one of the following statements correctly describes linear cost behaviour? A As activity levels increase, fixed cost per unit decreases. Variable cost per unit incredes as the level of activity increases. Total variable cost is constant at all levels of activity within the relevant range. Fixed cost per unit is constant at all levels of activity within the relevant range. 4 Points
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