cost-behavior patterns. (CPA, adapted). 10-23 Various The during wo axes. na vertical axes of the graphs below represent total cost, and the horizontal axes represent units produced a calendar year. In each case, the zero point of dollars and production is at the intersection of the two axes1. Annual depreciation of equipment, where the amount of depreciation charged is computed by the machine-hours method. 2. Electricity bill-a flat fixed charge, plus a variable cost after a certain number of kilowatt-hours are used, in which the quantity of kilowatt-hours used varies proportionately with quantity of units produced City water bill, which is computed as follows 3 First 1,000,000 gallons or less Next 10,000 gallons Next 10,000 gallons Next 10,000 gallons and so on $1,000 flat fee $0.003 per gallon used $0.006 per gallon used $0.009 per gallon used and so on The gallons of water used vary proportionately with the quantity of production output