Based on the Following Cost Data, What Conclusions Can You $\text { Total Cost }$

question 55

Multiple Choice

Based on the following cost data, what conclusions can you make about Product A and Product B? $\text { Total Cost }$
$\begin{array}{|l|r|c|}\hline \text { Production: } &{\text { Product A }} & \text { Product B } \\\hline 10 \text { units } & \$ 100 & ? \\\hline 100 \text { units } & \$ 1,000 & ? \\\hline 1,000 \text { units } & \$ 10,000 & ? \\\hline\end{array}$
$\text { Unit Cost }$

$\begin{array}{|l|c|r|}\hline \text { Production: } & \text { Product A } & \text { Product B } \\\hline 10 \text { units } & ? & \$ 10,000 \\\hline 100 \text { units } & ? & \$ 1,000 \\\hline 1,000 \text { units } & ? & \$ 100 \\\hline\end{array}$

• A) Product A is a fixed cost and Product B is a variable cost.
• B) Product A is a variable cost and Product B is a fixed cost.
• C) Product A and Product B are both variable costs.
• D) Product A and Product B are both mixed costs.

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Definitions:

Saturated Color

A color that is fully intense and vivid, without any addition of white, black, or gray, resulting in the purest form of the color.

Single Wavelength

A specific frequency of light or electromagnetic radiation, often used in scientific and technical contexts to describe a monochromatic beam.

Sensory Adaptation

The process by which sensory receptors change their sensitivity to a stimulus over time, often leading to a decrease in sensitivity to a constant stimulus.

Saturation

In a general context, the state or process that occurs when no more of something can be absorbed, combined with, or added.