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Based on the Following Cost Data, What Conclusions Can You  Total Cost \text { Total Cost }

Question 55

Multiple Choice

Based on the following cost data, what conclusions can you make about Product A and Product B?  Total Cost \text { Total Cost }
 Production:  Product A  Product B 10 units $100?100 units $1,000?1,000 units $10,000?\begin{array}{|l|r|c|}\hline \text { Production: } &{\text { Product A }} & \text { Product B } \\\hline 10 \text { units } & \$ 100 & ? \\\hline 100 \text { units } & \$ 1,000 & ? \\\hline 1,000 \text { units } & \$ 10,000 & ? \\\hline\end{array}
 Unit Cost \text { Unit Cost }

 Production:  Product A  Product B 10 units ?$10,000100 units ?$1,0001,000 units ?$100\begin{array}{|l|c|r|}\hline \text { Production: } & \text { Product A } & \text { Product B } \\\hline 10 \text { units } & ? & \$ 10,000 \\\hline 100 \text { units } & ? & \$ 1,000 \\\hline 1,000 \text { units } & ? & \$ 100 \\\hline\end{array}


A) Product A is a fixed cost and Product B is a variable cost.
B) Product A is a variable cost and Product B is a fixed cost.
C) Product A and Product B are both variable costs.
D) Product A and Product B are both mixed costs.

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