Less than 1 week –
Less than 10 hrs/week –
1) Understanding fixed and variable cost. Briefly describe what happens to each of the following as volume increases. Assume all values stay within their relevant range.
a. Total fixed cost?
b. Total variable cost?
c. Fixed cost per unit?
d. Variable cost per unit?
2) Step-fixed cost and the relevant range. Explain the relationship between step-
fixed costs and the relevant range.