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Content https://am-us- P2-14 Cost Behavior Patterns Various types of cost behavior pattems are depicted in the graphs presented below. Required: Indicate which graph best depicts the cost behavior patterns described below. A graph may be used more than once. 1. A computer manufacturer's cost of memory chips. The 5-year contract requires the company to buy a minimum of 1,000 chips a year at a specific price. For the next 1,000 additional chips purchased, the unit price decreases 10%. After 2,000 chips, the unit price decreases 15%. Content http n -us-cast-1-prod-te - Content helps //team-us-east-ore 2. A printed circuit board manufacturer's cost of waste disposal. The disposal cost increases by 1% of the initially agreed-upon amount per gallon of waste for each of the first 200 gallons, after which the per-gallon cost stays at $5. 3. Cost of industrial water, where a fixed cost of $500 is charged for the first 100,000 gallons. After that I cent per gallon is charged for the use of over 100,000 gallons. 4. Salaries of shift-supervisors. All three shifts are used. 5. Salaries of quality inspectors. One inspector can handle up to 100 units of products a day. 6. Depreciation of a machine center. The straight-line method is used, and the depreciation rate is 20% a year. 7. Payments for the direct labor workers' memberships in a private aerobics club. The company pays a fixed fee for the first 10 memberships. After that, the membership fee decreases by 5% per worker for each additional membership. 8. Wages paid to assembly line workers. Due to downsizing in the plant, over- https:/team-us-cast-1-prod- 2. A printed circuit board manufacturer's cost of waste disposal. The disposal cost increases by 1% of the initially agreed-upon amount per gallon of waste for each of the first 200 gallons, after which the per-gallon cost stays at $5. 3. Cost of industrial water, where a fixed cost of $500 is charged for the first 100,000 gallons. After that I cent per gallon is charged for the use of over 100,000 gallons. 4. Salaries of shift-supervisors. All three'shifts are used. 5. Salaries of quality inspectors. One inspector can handle up to 100 units of products a day. 6. Depreciation of a machine center. The straight-line method is used, and the depreciation rate is 20% a year. 7. Payments for the direct labor workers' memberships in a private aerobics clubThe company pays a fixed fee for the first 10 memberships. After that, the membership fee decreases by 5% per worker for each additional membership. 8. Wages paid to assembly line workers. Due to downsizing in the plant, over- time is normally expected. The overtime pay rate is 150% of the base rate. 9. Rent on a city-owned building in an inner-city area. The building is used for recruiting and training direct labor workers. The basic rent is $60,000 a year, which is reduced by $1,000 for each worker hired for more than 6 months. 10. Rent on a tract of land owned by the city. The company is building a factory on it. The rent is $100,000 a year unless and until 500,000 labor hours are generated. Beyond 500,000 labor hours, the rent drops to $40,000 a year
