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of the volium oreign 2 How does the relevant range apply How does the growth of

ID: 2606482 • Letter: O

Question

of the volium oreign 2 How does the relevant range apply How does the growth of PGI globally affect the firm's total costs (consider a 3-21 343 Fixed: Variable; and Mixed Costs Adams Manufacturing's five following operating and cost information for the two most recent May dune 10,000 20 300 Units produced Costs in each department Department A Department B Department C Department D Department E $10,000 25,000 35,000 18,000 22,000 $10,000 50,000 45,000 64,000 44,000 Required Identify whether the cost in each department is fixed, variable, or mixed.

Explanation / Answer

May June Units 10000 units cost per unit 20000 units cost per unit Department A $10000 1 $10000 0.50 Variable Department B 25000 2.5 50000 2.5 Fixed Department C 35000 3.5 45000 2.25 Mixed Department D 18000 1.8 64000 3.2 Mixed Department E 22000 2.2 44000 2..2 Variable