Taylor corpration is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcomng year. Past trends have indicated the following dollars were spent at three different levels of outpuut.
Unit Levels
10,000 12,000 15,000
A costs 25,000 29,000 35,000
B costs 10,000 15000 15000
C costs 15,000 18,000 22500
In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as:
a. semivariable, fixed and variable respectively.
b. variable, fixed, and variable, respectively.
c. semivariable, semivariable, and semivariable, respectively.
d. variable, semivariable, and semivariable, respectively.