Based on the following cost data, what conclusions can you make about the costs of Product A and Product B?
Total Cost
Production: Product A Product B
10 units $100 ?
100 units $1,000 ?
1,000 units $10,000 ?
Unit Cost
Production: Product A Product B
10 units ? $10,000
100 units ? $1,000
1,000 units ? $100
a. Product A and Product B are both variable costs.
b. Product A and Product B are both mixed costs.
c. Product A is a fixed cost and Product B is a variable cost.
d. Product A is a variable cost and Product B is a fixed cost.
Answers: 2
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