Identifying Cost Behavior. Mountainside Company is trying to identify the cost behavior of the three costs that follow. Cost information is provided for three months.

Cost A Cost B Cost C

Month Units Produced Total Costs Cost per Unit Total Costs Cost per Unit Total Costs Cost per Unit

1 1,500 $1,500 ___ $4,500 _ $3,000 _

2 3,000 1,500 _ 5,250 _ 6,000 _

3 750 1,500 _ 3,750 _ 1,500 ___

Required:

Calculate the cost per unit, and then identify how the cost behaves for each of the three costs (fixed, variable, or mixed). Explain the reasoning for your answers.

How does identifying cost behavior patterns help managers?

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