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Question 3: Marks) (30 A. Draw diagrams for the following and label them: 1. Total Variable Cost and Variable Cost per unit. (8 Marks)

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Question 3: Marks) (30 A. Draw diagrams for the following and label them: 1. Total Variable Cost and Variable Cost per unit. (8 Marks) 2. Total Fixed Cost and Fixed cost per unit 3. Stepped Fixed Costs. (8 Marks) (4 Marks) B. Following are the Total Costs & Units Produced at various activity levels. (10Marks) Units Produced Total Cost in Omani Rials 1,000 Units 500,000 5,000 Units 900,000 Using High/Low method, calculate: 1. Variable Cost per unit 2. Fixed Cost Marks) (3 Marks) (3 (4 Marks) 3. Total Cost if activity level is 9,000 units.

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