“3. Data for Cost A and Cost B are as follows: Number of Units Produced Unit Cost Total Cost Cost A 1 ? $ 10 10 ? 100 100 ? 1000 1,000 ? 10000 Cost B 1 5000 ? 10 500 ? 100 50 ? 1,000 5 ? Which of the above best describes the behavior of Costs A and B? a. Cost A is fixed, Cost B is variable. b. Cost A is variable, Cost B is fixed. c. Both Cost A and Cost B are variable. d. Both Cost A and Cost B are fixed.”
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