thompson company s cost and production data for two recent months included the follo 650496

Fixed versus variable cost behavior

Thompson Company’s cost and production data for two recent months included the following.

	January	February
Production (units)	90	230
Rent	$1,500	$1,500
Utilities	$ 450	$1,150

Required

a. Separately calculate the rental cost per unit and the utilities cost per unit for both January and February.

b. Identify which cost is variable and which is fixed. Explain your answer.