McConnell Inc. manufactures and sells a single product with a price of $50 per unit. The following annual cost data have been estimated for the firm’s upper and lower levels of its relevant range of activity:

Required: 

1. Classify each cost according to its apparent behavior pattern (fixed, variable, or semivariable). 

2. Prepare diagrams showing (1) revenue, (2) total variable costs, (3) total semivariable costs, and (4) total fixed costs. 

3. Express revenues and costs in an equation format.

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Production (units) Manufacturing costs: Direct materials Direct labor. Overhead: Indirect labor. Supplies.... Depreciation Distribution expenses: Salespersons Travel and advertising. Other..... General and administrative expenses Total Lower Level 5,000 $ 50,000 40,000 Upper Level 7,500 $ 75,000 60,000 21,000 28,500 20,000 30,000 12,000 12,000 45,000 62,500 13,000 13,000 29,000 41,500 30,000 37,500 $260,000 $ 360,000