Yang Manufacturing, Which Uses the High-Low Method, Makes a Product

Multiple Choice

Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. $\begin{array}{|l|l|l|l|l|l|l|l|}\hline&\text { Type A}&&\text { Type B}&&\text { Type C}&&\text { Total } \\\hline 5,000 \text { units } & \$ 4 & & \$ 9 && \$ 4 & & \$ 17 \\\hline 7.500 \text { units } & \$ 4 && \$ 6 & &\$ 3 & & \$ 13 \\\hline\end{array}$ The cost types shown above are identified by behaviour as: $\begin{array}{l}\begin{array}{|l|l}\hline&\text { Type A }\\\hline 1 & \text { Fixed } \\\hline 2 & \text { Fixcd } \\\hline 3 & \text { Variable } \\\hline 4 & \text { Variable } \\\hline 5 & \text { Semivariable } \\\hline\end{array}\begin{array}{|l|l}\hline&{\text { Type B }} \\\hline &\text { Variable } \\\hline & \text { Semivariable } \\\hline &\text { Scmivariable } \\\hline &\text { Fixed } \\\hline & \text { Variable } \\\hline\end{array}\begin{array}{|l|l|}\hline&{\text { Type C }} \\\hline &\text { Semivariable } \\\hline &\text { Variable } \\\hline & \text { Fixed } \\\hline &\text { Semivariable } \\\hline &\text { Fixed }\\\hline\end{array}\end{array}$

A) 1
B) 2
C) 3
D) 4
E) 5