Problem
Generic Motors incurs three types of costs (a, b and c) in its manufacturing process. The following table presents total costs for each type for two different activity levels:
|
(a)
|
(b)
|
(c)
|
|
5,000 units
|
$40,000
|
$60,000
|
$15,000
|
|
7,500 units
|
$60,000
|
$70,000
|
$15,000
|
Required:
Identify whether each cost is fixed, mixed or variable?