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One suggestion to the leader based on path-goal theory is for the leader to:
Relevant Range
The range of activity or volume over which the assumed cost behavior is valid, beyond which cost patterns and relationships may change.
Average Costs
The total costs divided by the number of units produced, giving a per unit cost average.
Total Variable Cost
The sum of all costs that vary with output level, including materials, labor, and other costs that increase with production volume.
Relevant Range
The range of activity within which the assumptions about fixed and variable cost behavior are valid.
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