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Question: Following are five graphs representing various cost behaviors.

(1) Identify whether the cost behavior in each graph is mixed, step-wise, fixed, variable, or curvilinear.

(2) Identify the graph (by number) that best illustrates each cost behavior:

(a) Factory policy requires one supervisor for every 30 factory workers;

(b) real estate taxes on factory;

(c) electricity charge that includes the standard monthly charge plus a charge for each kilowatt hour;

(d) commissions to salespersons; and

(e) costs of hourly paid workers that provide substantial gains in efficiency when a few workers are added but gradually smaller gains in efficiency when more workers are added.

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