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Analyze the cost structure of ABC Corporation based on the following data: Cost Category Fixed ($) Variable per Unit ($) Direct Materials $20,000 $10 Direct


  1. Analyze the cost structure of ABC Corporation based on the following data:
Cost CategoryFixed ($)Variable per Unit ($)
Direct Materials$20,000$10
Direct Labor$15,000$8
Utilities$10,000$5

Requirements:

  • Classify each cost as fixed or variable.
  • Calculate the total cost for different levels of activity.
  • Present the analysis in a detailed table format.
  • Discuss the implications of cost behavior on decision-making.

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