32. (Cost behavior) O’Malley Company produces baseball caps. The company incurred the following costs to produce 2,000 caps last month:

Cardboard for the bills $ 1,200 Cloth materials 2,000 Plastic for headband straps 1,500 Straight-line depreciation 1,800 Supervisors’ salaries 4,800 Utilities 900 Total $12,200

a. What did each cap component cost on a per-unit basis?

b. What is the probable type of behavior that each of the costs exhibits?

c. The company expects to produce 2,500 caps this month. Would you expect each type of cost to increase or decrease? Why? Why can’t the total cost of 2,500 caps be determined?