Based on the following cost data, what conclusions can you make about the costs of Product A and Product B? Total CostProduction:Product AProduct B10 units$100 ? 100 units$1,000 ? 1,000 units$10,000 ? Unit CostProduction:Product AProduct B10 units ? $10,000 100 units ? $1,000 1,000 units ? $100
A. The costs of Product A and Product B are both variable costs.
B. The cost of Product A is a variable cost and the cost of Product B is a fixed cost.
C. The costs of Product A and Product B are both mixed costs.
D. The cost of Product A is a fixed cost and the cost of Product B is a variable cost.
Answer: B
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