1.

Within the relevant range:

variable cost per unit decreases as production decreases.

fixed cost per unit decreases as production decreases.

variable cost per unit increases as production decreases.

fixed cost per unit increases as production decreases.

8.

Supply costs at Chobot Corporations chain of gyms are listed below:

	Client-Visits	Supply Cost
January	11,655	$28,569
February	11,451	$28,403
March	11,983	$28,827
April	12,800	$28,908
May	11,715	$28,630
June	11,201	$28,229
July	11,995	$28,828
August	11,686	$28,586
September	11,834	$28,711

Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low method to estimate the variable and fixed components of this cost, Compute the variable component first, rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates would be closest to: (Round your Variable cost per unit to 2 decimal places.)

$0.46 per client-visit; $23,027 per month

$0.42 per client-visit; $23,532 per month

$2.11 per client-visit; $28,631 per month

$1.00 per client-visit; $16,474 per month

9.

The following costs were incurred in April:

Direct materials	$43,700
Direct labor	$29,600
Manufacturing overhead	$22,600
Selling expenses	$17,000
Administrative expenses	$31,100

Prime costs during the month totaled:

$95,900

$144,000

$73,300

$52,200

11.

Nieman Inc., a local retailer, has provided the following data for the month of March:

Merchandise inventory, beginning balance	$45,700
Merchandise inventory, ending balance	$42,100
Sales	$263,500
Purchases of merchandise inventory	$142,300
Selling expense	$15,300
Administrative expense	$60,800

The cost of goods sold for March was:

$142,300

$218,400

$138,700

$145,900

14.

The following costs were incurred in April:

Direct materials	$39,200
Direct labor	$33,400
Manufacturing overhead	$25,100
Selling expenses	$23,600
Administrative expenses	$40,600

Conversion costs during the month totaled:

$58,500

$64,300

$161,900

$72,600