Information is provided to you showing results for the past two periods.

P1P2

Sales$250.00$425.00

Costs$35.00$42.00

Analyse the results and select the correct answer.

Select one:

a.

As the costs are changing from one period to the next, then these must all be variable costs.

b.

In period 2 the fixed costs are $35 and the variable costs are $17

c.

In period 1 the fixed costs are $20 and the variable costs are $15

d.

As costs are changing together with changes in sales, then these must all be variable costs.

e.

The costs shown are a mixed cost