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Mining, Inc., is trying to identify the cost behavior of the three costs shown. Cost information is provided for six months. Cost 1 Cost 2

 Mining, Inc., is trying to identify the cost behavior of the three costs shown. Cost information is provided for six months.

Cost 1

Cost 2

Cost 3

Month

Units Produced

Total Costs

Cost per Unit

Total Costs

Cost per Unit

Total Costs

Cost per Unit

1

8,000

$10,000

_____

$24,000

_____

$32,000

_____

2

10,000

10,000

_____

29,000

_____

40,000

_____

3

12,000

10,000

_____

33,600

_____

48,000

_____

4

14,000

10,000

_____

36,400

_____

56,000

_____

5

16,000

10,000

_____

38,400

_____

64,000

_____

6

18,000

10,000

_____

39,600

_____

72,000

_____

Required:

Calculate the cost per unit, and then identify how the cost behaves (fixed, variable, or mixed) for each of the three costs.

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