Mateo Company's average cost per unit is $1.425 at the 16,000 unit level of activity and

$1.38 at the 20,000 unit level of activity.

Assume that all of the activity levels mentioned in this

problem are within the relevant range.

Required:

Predict the following items for Mateo Company:

a. Variable cost per unit.

(3 marks)

b. Total fixed cost per period.

(2 marks)

c. Total expected costs at the 18,000 unit level of activity.