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5-3
a. Cost behavior: Cost behavior refers to Step-Variable Cost
16,000
14,000
12,000
10,000
Total Cost
8,000
6,000
4,000
2,000
0
0 2,000 4,000 6,000 8,000 10,000
Units Processed
$25,000
$20,000
Car Wash Costs
$15,000
$10,000
$5,000
$0
0 1,000 2,000 3,000 4,000 5,000 6,000
Rental Returns