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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Exercise 11-5Â Â Â Â Â Fixed versus variable cost behavior
Robbins Company’s cost and production data for two recent months included the following.
|
Production (units) |
100 |
250 |
|
Rent |
$1,500 |
$1,500 |
|
Utilities |
$ 450 |
$1,125 |
Â
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Â
Â
Â
Â
Required
a.    Separately calculate the rental cost per unit and the utilities cost per unit for both January and February.
b.    Identify which cost is variable and which is fixed. Explain your answer.
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