Based on the following cost data, what conclusions can you make about the costs of Product A and Product B?
Total Cost
Production: Product A Product B
10 units $100?
100 units $1,000?
1,000 units $10,000?
Unit Cost
Production: Product A Product B
10 units? $10,000
100 units? $1,000
1,000 units? $100
a. Product A and Product B are both variable costs.
b. Product A and Product B are both mixed costs.
c. Product A is a fixed cost and Product B is a variable cost.
d. Product A is a variable cost and Product B is a fixed cost.
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