Based on the Following Cost Data, Items Labeled (A) and (B)

question 141

Multiple Choice

Based on the following cost data, items labeled (a) and (b) in the table below are which of the following amounts, respectively? $\begin{array}{|l|r|r|}\hline \text { Number of units: } & 1,500 & 3,000 \\\hline \text { Total cost: } & & \\\hline \text { Variable } & \$ 7,500 & \$ 15,000 \\\hline \text { Fixed } & \$ 6,000 & \$ 6,000 \\\hline & & \\\hline \text { Cost per unit: } & & \\\hline \text { Variable } & \$ 5 & \text { (a) } \\\hline \text { Fixed } & \$ 4 & \text { (b) } \\\hline\end{array}$

• A) (a) = $3.00; (b) = $3.00
• B) (a) = $5.00; (b) = $4.00
• C) (a) = $2.50; (b) = $2.00
• D) (a) = $5.00; (b) = $2.00

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