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The graphs below represent cost behavior patterns that might occur in a company's cost structure. The vertical axis represents total cost and the horizontal axis
The graphs below represent cost behavior patterns that might occur in a company's cost structure. The vertical axis represents total cost and the horizontal axis represents activity output. For each of the following situations, choose the graph that best illustrates the cost pattern involved. A graph may be used more than once. Required: Write your answer on the underlined space indicated for each question. For example, if you think the best answer for Question 1 is 'Graph b', then write b on the underlined space provided. _1. The cost of power when a fixed fee of $500 per month is charged plus an additional charge of $0.12 per kilowatt-hour used. 2. Commissions paid to sales representatives. Commissions are paid at the rate of 59% of sales up to sales amount of $500,000. Above $500,000, the rate increases to 70% of sales. 3. A part purchased from an outside supplier costs $12 per part for the first 3,000 units and then $10 per part in excess of 3,000 units. 4. The cost of tuition at a university that charges $250 per credit hour up are capped at 15 credit hours. Hours taken in excess of 15 credit hours are free. 5. The cost of tuition at a university that charges $4,500 per semester for any course load ranging from 12 to 15 credit hours. Students taking fewer than 12 credit hours are charged $375 per credit hour, Students taking more than 15 credit hours are charged $4,500 plus $300 per credit hour in excess of 15 credit hours. 6. The cost of dairy milk used to produce chocolate bars. 7. The straight-line method of depreciation for a diagnostics equipment used in the inspection of incoming orders. 8. The use of disposable gowns by patients in a hospital. 9. The cost of an internet connection is $10 per month. There is an additional charge of $1.50 per hour when usage exceeds 15 hours. 10. A manufacturer found that the maintenance cost of its heavy machinery was tied to the age of the equipment. Experience indicated that the maintenance cost increased at an increasing rate as the equipment aged
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