Two different costs incurred by Ruiz Company exhibit the following behavior pattern per unit: $$\begin{array} { | l | l | l | l | l | }
\hline & { \text { Units Sold } } \
\hline & 50 & 100 & 150 & 200 \
\hline \text { Cost \# } 1 & \$ 300 \text { per unit } & \$ 150 \text { per unit } & \$ 100 \text { per unit } & \$ 75 \text { per unit } \
\hline \text { Cost \# 2 } & \$ 2 \text { per unit } & \$ 2 \text { per unit } & \$ 2 \text { per unit } & \$ 2 \text { per unit } \
\hline
\end{array}$$ Cost #1 and Cost #2 exhibit which of the following cost behavior patterns, respectively?
A) Fixed/Variable
B) Variable/Variable
C) Fixed/Fixed
D) Variable/Fixed

Question

Two different costs incurred by Ruiz Company exhibit the following behavior pattern per unit: $$\begin{array} { | l | l | l | l | l | } 
\hline & { \text { Units Sold } } \
\hline & 50 & 100 & 150 & 200 \
\hline \text { Cost \# } 1 & \$ 300 \text { per unit } & \$ 150 \text { per unit } & \$ 100 \text { per unit } & \$ 75 \text { per unit } \
\hline \text { Cost \# 2 } & \$ 2 \text { per unit } & \$ 2 \text { per unit } & \$ 2 \text { per unit } & \$ 2 \text { per unit } \
\hline
\end{array}$$ Cost #1 and Cost #2 exhibit which of the following cost behavior patterns, respectively?
A) Fixed/Variable
B) Variable/Variable
C) Fixed/Fixed
D) Variable/Fixed

Quizplus · Accepted Answer

Cost #1 is fixed because it decreases as the number of units sold increases, while Cost #2 is variable because it remains constant as the number of units sold increases.

Two Different Costs Incurred by Ruiz Company Exhibit the Following