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1 Shingle Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown

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Shingle Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below. Output in Units 1,000 2,000 3,000 4,000 5,000 6,000 7.000 8,000 9,000 10,000 11,000 Rent Expense $5,000 5,000 8,000 8,000 8,000 8,000 8,000 8,000 10,000 10,000 10,000 Direct Materials $4,000 7,200 9,000 12.000 15,000 18.000 21,000 24,000 29,300 35.000 44,000 (a) Explain the behavior of each cost for output ranging from 1,000 to 11,000 units. BITTI. Ea a E * 3 > O Words

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