Cost behaviour patterns1) costschange in direct proportion to a change in activity. Exhibit 3.3Variable cost: direct material cost for wholemealrolls, Tasty Bread CompanyLangfi el d-Smith, K., Smi th, D., Andon, P., Hi l ton, R., Thorne, H., 2018. Management Accounting: Informati on for creating and managing value, McGraw-Hill, Aus tralia, 8th Edition Y = bXTotal variable costvariable cost per unitof activityLevel of activity(the slope of the line) Y = 0.1XX=20,000Y=2,00012 6/03/20217Cost behaviour patterns2) costsremain unchanged in total as the level of activity varies. Exhibit 3.4Fixed cost: premises cost, Tasty Bread CompanyLangfi el d-Smith, K., Smi th, D., Andon, P., Hilton, R., Thorne, H., 2018. Management Accounting: Informati on for creating and managing value, McGraw-Hill, Aus tralia, 8th Edition Y = aTotal Fixed costas activity increases, total fixed costs do not change, although unit fixed cost declines.Y = 15,000X1= 1,000X2= 10,000Fixed cost per unitFixed costLevel of activity151.5Although, fixed cost per unit declines when the level activity increases, a fixed cost does not really behave in a 'per unit' fashion.13 Cost behaviour patterns3) costssome costs remain fixed over a wide range of activity levels but jump to a different amount for levels outside that range. Exhibit 3.5Step-fixed cost: shop managers' salaries, Tasty Bread CompanyLangfi el d-Smith, K., Smi th, D., Andon, P., Hi l ton, R., Thorne, H., 2018. Management Accounti ng: Information for creating and managing value, McGraw-Hill, Australia, 8th Edition Y = a1Y = a2Y = a3X<x1×1<X<x2X>x2146/03/20217Cost behaviour patterns2) costsremain unchanged in total as the level of activity varies. Exhibit 3.4Fixed cost: premises cost, Tasty Bread CompanyLangfi el d-Smith, K., Smi th, D., Andon, P., Hi l ton, R., Thorne, H., 2018. Management Accounting: Informati on for creating and managing value, McGraw-Hill, Aus tralia, 8th Edition Y = aTotal Fixed costas activity increases, total fixed costs do not change, although unit fixed cost declines. Y = 15,000X1= 1,000X2= 10,000Fixed cost per unitFixed costLevel of activity151.5Although, fixed cost per unit declines when the level activity increases, a fixed cost does not really behave in a 'per unit' fashion.13 Cost behaviour patterns3) costssome costs remain fixed over a wide range of activity levels but jump to a different amount for levels outside that range. Exhibit 3.5Step-fixed cost: shop managers' salaries, Tasty Bread Company Langfi el d-Smith, K., Smi th, D., Andon, P., Hi l ton, R., Thorne, H., 2018. Management Accounting: Information for creating and managing value, McGraw-Hill, Australia, 8th Edition Y = a1Y = a2Y = a3X<x1×1<X<x2X>x214 6/03/20218Cost behaviour patterns4) costs (mixed cost)has both fixed and variable components.Exhibit 3.6Semivariablecost: cost of operating delivery trucks, Tasty Bread CompanyLangfi el d-Smith, K., Smi th, D., Andon, P., Hilton, R., Thorne, H., 2018. Management Accounting: Information for creating and managing value, McGraw-Hill, Australia, 8th Edition Y = a + bXTotal costvariable cost per unitof acti