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Analyze the cost behavior of General Electric Company's manufacturing overhead costs. Based on historical data, GE incurred total manufacturing overhead costs of $1.5 million when
Analyze the cost behavior of General Electric Company's manufacturing overhead costs. Based on historical data, GE incurred total manufacturing overhead costs of $1.5 million when production was 10,000 units and $2 million when production increased to 15,000 units. Determine whether the manufacturing overhead costs are fixed, variable, or mixed, and explain the rationale behind your classification. Discuss the implications of cost behavior analysis for GE's cost management and decision-making processes.
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