(a) Identify the cost behaviour in each of the following tables as:
(i) fixed cost; or
(ii) variable cost; or
(iii) semi variable cost.
(b) Draw a graph for each table to illustrate the cost behaviour.
|
Cost X |
|||||
|
Output (units) |
100 |
200 |
300 |
400 |
500 |
|
Total cost (£) |
600 |
600 |
600 |
600 |
600 |
|
Unit cost (£) |
6.00 |
3.00 |
2.00 |
1.50 |
1.20 |
|
Cost Y |
|||||
|
Output (units) |
100 |
200 |
300 |
400 |
500 |
|
Total cost (£) |
300 |
600 |
900 |
1,200 |
1,500 |
|
Unit cost (£) |
3.00 |
3.00 |
3.00 |
3.00 |
3.00 |
|
Cost Z |
|||||
|
Output (units) |
100 |
200 |
300 |
400 |
500 |
|
Total cost (£) |
660 |
720 |
780 |
840 |
900 |
|
Unit cost (£) |
6.60 |
3.60 |
2.60 |
2.10 |
1.80 |