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Epsilon Products tracks its production costs as follows: 450 products in Month 1: $4,500 total cost 900 products in Month 2: $6,300 total cost 1,350

  • Epsilon Products tracks its production costs as follows:
    • 450 products in Month 1: $4,500 total cost
    • 900 products in Month 2: $6,300 total cost
    • 1,350 products in Month 3: $7,650 total cost
  • Requirement: Calculate the per-product cost for each month, identify the cost behavior, and discuss how cost analysis can aid in operational efficiency.

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