UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

148. Correct answer a. Cost A appears to be semi-variable or mixed as it varies between

quantities but does not vary consistently so a portion must be fixed and a portion variable.

Cost B is fixed in the relevant range (14,000 units) and Cost C varies consistently for all

quantities and therefore must be variable.