Answer:
a. Semi variable, fixed and variable
Explanation:
The computation of costs is shown below:-
Variable Cost per unit = Change in Cost ÷ Change in Output
Fixed Cost = Total Cost - Variable Cost
For Cost A
Variable Cost per unit
= ($35000 - $25000) ÷ ($15,000 - $10,000)
= $2 per unit
Fixed Cost = $35,000 - $15,000 x $2
= $5,000
This is mixed cost which has variable and fixed cost and also known as semi variable.
For Cost B
Therefore, it is fixed cost, So, Cost B is same for 15000 units and 12000 units
For Cost C
Variable Cost per unit = ($22500 - $15000) ÷ (15,000 - 10,000)
= $1.50 per unit
Fixed Cost = $22,500 - 15,000 × $1.5
= 0
So, the fixed cost is 0,
Variable cost is Cost C
a. Semi variable, fixed and variable