1. The following is a list of various costs of producing T-shirts. Classify each cost as either a variable, fixed, or mixed cost for units produced and sold.

(a)	Leather used to make a handbag.
(b)	Warehouse rent of $8,000 per month plus $.50 per square foot of storage used.
(c)	Thread.
(d)	Electricity costs of $.038 per kilowatt-hour.
(e)	Janitorial costs of $4,000 per month.
(f)	Advertising costs of $12,000 per month.
(g)	Accounting salaries.
(h)	Color dyes for producing different colors of sweatshirts.
(i)	Salary of the production supervisor.
(j)	Straight-line depreciation on sewing machines.
(k)	Patterns for different designs. Patterns typically last many years before being replaced.
(l)	Hourly wages of sewing machine operators.
(m)	Property taxes on factory, building, and equipment.
(n)	Cotton and polyester cloth.
(o)	Maintenance costs with sewing machine company. The cost is $2,000 per year plus $.001 for each machine hour of use.

2. Copper Hills manufactures laser printers within a relevant range of production of 70,000 to 100,000 printers per year. The following partially completed manufacturing cost schedule has been prepared:

	Number of Printers Produced
	70,000	90,000	100,000
Total costs:
Total variable costs	$350,000	(d)	(j)
Total fixed costs	630,000	(e)	(k)
Total costs	$980,000	(f)	(l)
Cost per unit:
Variable cost per unit	(a)	(g)	(m)
Fixed cost per unit	(b)	(h)	(n)
Total cost per unit	(c)	(i)	(o)

Complete the preceding cost schedule, identifying each cost by the appropriate letter (a) through (o).

3. For the current year ending April 30, Haley Company expects fixed costs of $60,000, a unit variable cost of $70, and anticipated break-even of 1,715 sales units.

(a)	Compute the unit sales price.
(b)	Compute the sales (units) required to realize an operating profit of $8,000.

Round your answer to the nearest whole number.

4. Currently, the unit selling price is $50, the variable cost, $34, and the total fixed costs, $108,000. A proposal is being evaluated to increase the selling price to $54.

(a)	Compute the current break-even sales (units).
(b)	Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

5. For the coming year, Reve Company estimates fixed costs at $109,000, the unit variable cost at $21, and the unit selling price at $85. Determine (a) the break-even point in units of sales, (b) the unit sales required to realize operating income of $150,000 and (c) the probable operating income if sales total $500,000.

Round units to the nearest whole number and percentage to one decimal place.