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The Harbour Town Golf course on Hilton Head Island has many different types of costs. Four such costs are listed below Assume that the cost
The Harbour Town Golf course on Hilton Head Island has many different types of costs. Four such costs are listed below Assume that the cost driver (the activity which causes the cost to be incurred) for each cost is the number of golfers who play the course Also assume that the cost behavior patterns hold over the ranges of number of golfers given below. The costs below are TOTAL costs. NUMBER OF GOLFERS TYPE OF COSTS 20,000 * $120,000 $120,000 $180,000 $180,000 $230,000 $230,000 82,740 100,470 118,200 113,000 263,000 313,000 413,000 488,000 563,000 72,320 72,320 2,000 8,000 10,000 14,000 17,000 11,820 47,280 59,100 72,320 72,320 72,320 72,320 Required: 1.Identify (in equation form) the cost behavior pattern for each type of cost. Sketch two graphs for each of the 4 types of costs. For each graph the X-axis is the number of golfers. For the first graph the Y-axis is total cost and for the second graph the Y-axis is unit cost. 2. *Type A costs increase at 8,001 units and 14,001 units
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