Question

The per-unit amount of three different production costs for Onini, Inc., are as follows:    Cost...

The per-unit amount of three different production costs for Onini, Inc., are as follows:   

Cost A

Cost B

Cost C

Production = 10,000

$ 20.00

$ 15.00

$ 12.00

Production = 40,000

$ 5.00

$ 11.25

$ 12.00

What type of cost are each of these three costs?

Group of answer choices:

A) Cost A is fixed, Cost B is mixed, Cost C is variable.

B) Cost A is fixed, Cost B is variable, Cost C is mixed.

C) Cost A is variable, Cost B is mixed, Cost C is fixed.

D) Cost A is variable, Cost B is fixed, Cost C is mixed.

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Answer #1
Answer
Production Cost A Cost B Cost C
10,000 $ 20.00 $ 15.00 $ 12.00
40,000 $ 5.00 $ 11.25 $ 12.00
Cost A Fixed Cost, Because of Per unit cost change with level of activity but total cost not change.
Cost B Mixed Cost, Because of total cost change with level of activity and Per unit cost also change with level of activity.
Cost C Variable Cost, Because of total cost change with level of activity but Per unit cost not change.
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