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the financial controller, has collected what he believes to be the relevant data for the past 6 months. It is Mr. Molly's professional opinion that

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the financial controller, has collected what he believes to be the relevant data for the past 6 months. It is Mr. Molly's professional opinion that the storeroom costs should be closely related to the volume of the shipments received; thus, he has provided you with the following information shipments were received in January, with a total cost of $50000, of which $20,000 are total 5,000 variable costs and $30,000 are total fixed costs. The company uses the January shipments as the base level of activity to determine the variable and fixed cost components for the following changes in shipments activity February: Increase by 10% March: Increase by 20% April: Increase by 30% May: Increase by 40% June: Increase by 50% Required task: Q1: Using the linearity cost functions (cost behavior) principle, prepare a statement for the company management for January to June activities by showing the breakdown of storeroom costs (fixed costs (total and unit) and variable costs (total and unit). Q2: Write down the equation that can represent the total mixed costs with the definition of each variable

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