A.

Pavarti's Sandwiches sells its signature 2-foot long sub sandwiches. These sandwiches are so good, it is the only item on the menu. In recent years, Pavartis breakeven point has been 30,000 sandwiches. Annual fixed cost are $600,000 and the sandwiches have a sales price of $27.

What is the variable cost per unit of each sandwich?

B.

Using the following data, apply the high-low method of cost analysis to the three cost data groups:

Volume	Alpha	Beta	Gamma
2,000	$6,600	$2,400	$8,000
6,000	$9,800	$7,000	$8,000
13,000	$13,000	$12,000	$8,000
20,000	$21,000	$24,000	$8,000

What cost behavior patterns are apparent for Alpha?

Select one:

a. Fixed

b. Variable

c. Mixed

d. Semi-fixed

e. None of the above