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“the equation for a straight line is y=fx+v, where y is the total cost, f is the fixed cost per unit, x is the volume of activity, and v is the variable cost per unit”
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Read morecost behavior can be mathematically expressed using equations
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Read more“in the equation y=vx+f, the f represents the volume of activity”
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Read more“in the equation y=vx+f, the x represents the fixed costs”
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Read morerelevant range is the range of activity (volume) over which total fixed costs and variable costs per unit can be assumed to remain the same
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Read moretotal mixed cost graphs intersect at the y-axis at the level of fixed costs
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Read moretotal mixed cost graphs slope upward but do not begin at the origin
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Read moretotal mixed costs increase as volume increases because of the variable cost component
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Read more“when graphing total variable costs, the cost line begins at the origin”
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