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Question: What is the relationship between average cost and cost? a. Average cost = cost ∗ number of units b. Average cost =cost− number of units c. Average cost =cost/ number of units d. Average cost = cost + number of units. Show transcribed image text. There’s just one step to solve this. Costs that do not change with production level are known as fixed costs. Payback analysis utilizes a significantly different approach to alternative evaluation than the primary methods of PW, AW, ROR, and B/C. It is possible for payback analysis to select a different alternative than these techniques. Examples of fixed costs are direct labor ...Question: Question 1. a) What is a cost leadership strategy? Define, and explain how it is different from a differentiation strategy. (1 point) b) Illustrate both strategies using an example of a cost-leader firm and a differentiator firm within the same industry. 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