Cost#102 and Cost#103) in its manufacturing process. The following table
presents total costs for each type of cost for two different production levels:
Production quantity Cost # 101 Cost #102 Cost # 103 3,800 $10,830 $8,982
$15,960 4,200 $11,970 $9,782 $15,960 Identify whether each cost is variable,
fixed or mixed. The answer choices list the type of cost in order for Cost#101,
Cost#102 and Cost#103. A. Variable Fixed Mixed B. Fixed Variable Fixed C.
Fixed Mixed Variable D. Variable Mixed Fixed E. Fixed Variable Mixed
Answer & Explanation
To determine whether each cost is variable, fixed, or mixed, we need to analyze
how the costs change with the production quantity.
1. Cost #101:
o At 3,800 units: $10,830
o At 4,200 units: $11,970