BA225 Managerial Accounting: BE5-2 For Lodes Company, the relevant range of production

BA225 Managerial Accounting

BE5-2

For Lodes Company, the relevant range of production in 40-80% of capacity. At 40% capacity, a variable cost is $4,000 and fixed cost is $6,000.

Diagram the behavior of each cost within relevant range assuming the behavior is linear.
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