Question

The following data have been collected for four different cost items.

Answer 1

Answer:

Option (B) is correct.

Explanation:

W.

For finding the variable expenses = change in the cost ÷ change in the quantity

= (10,560 - 8,000) ÷ (140 - 100)

= 2560 ÷ 40

= 64 per unit

total variable expenses for 100 units 64 × 100 = 6400

fixed expenses = 8000 - 6400

= 1600  so it is of MIXED

X.

Here at even different quantity cost is same so it is of fixed expenses

Y.

For variable expenses = (9100-6500) ÷ (140-100)

= 65 per unit

for variable expenses = 65 × 100

                                     = 6,500

so it is of fully variable expenses

Z.

variable expenses = (8,580 - 6,700) ÷ (140 - 100)

= 47 per unit

= 47 × 100

= 4,700

so it is of mixed expenses