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 and variable
B)Variable and variable
C)Fixed and fixed
D)Variable and 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 and variable
B)Variable and variable
C)Fixed and fixed
D)Variable and fixed

Quizplus · Accepted Answer

Cost #1 decreases per unit as the number of units sold increases, indicating it is a fixed cost. Cost #2 remains constant per unit regardless of the number of units sold, indicating it is a variable cost.

Two Different Costs Incurred by Ruiz Company Exhibit the Following