Question

2 parts to the question

Exercise 11-5 Fixed versus variable cost behavior LO 11-1 Perez Company's cost and production data for two recent months included the following: Production (units) Rent U ilities March 700 $1,700 $ 8ee April 1,000 $1,700 $1,143 Required a. Separately calculate the rental cost per unit and the utilities cost per unit for both March and April b. Identify which cost is variable and which is fixed Complete this question by entering your answers in the tabs below. Required A Required B Separately calculate the rental cost per unit and the utilities cost per unit for both March and April. (Round your answers to 2 decimal places.) March April Rent cost per unit Utility cost per unit Required B >

Answer 1

A)

	March	April
Rent cost per unit	1,700/700 = $2.43	1,700/1,000 = $1.7
Utility cost per unit	800/700 = $1.14	1,143/1,000 = $1.14

B)

Rent cost	Fixed cost
Utility cost	Variable cost

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