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A particular cost is classified as being semi-variable.
What is the effect on the TOTAL COST if activity increases by 20%?
A.stay the same
B.decreases by less than 20%
C.increases by 20%
D.increases by less than 20%Assume the cost and calculate according to the increase or decrease of percentage
Activity level : 100
Variable per unit : $2
Fixed : $500
Total : $700Now do another set which activity level increase by 20%
Activity level : 120
Variable per unit : $2
Fixed : $500
Total : $740Then find the difference in total cost in %
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