Identify whether each cost is fixed mixed or variable

Reference no: EM131967444

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?

Reference no: EM131967444

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