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Unformatted text preview: Total Variable Cost $10,000 $20,000 $30,000 Units Produced 5,000 10,000 15,000 Variable Cost per Unit $2.00 $2.00 $2.00 Mixed Costs: Mixed costs or semi-variable costs have properties of both fixed and variable costs due to presence of both variable and fixed components in them. An example of mixed cost is telephone expense because it usually consists of a fixed component such as line rent and fixed subscription charges as well as variable cost charged per minute cost. Another example of mixed cost is delivery cost which has a fixed component of depreciation cost of trucks and a variable component of fuel expense. Since mixed cost figures are not useful in their raw form, therefore they are split into their fixed and variable components by using cost behavior analysis techniques such as High-Low Method, Scatter Diagram Method and Regression Analysis....
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This note was uploaded on 04/03/2012 for the course ACCT 275 taught by Professor Stangota during the Spring '09 term at Rutgers.
- Spring '09
- Managerial Accounting