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Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production. Production in Units

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Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production. Production in Units Production Costs Direct materials Direct labor Utilities Rent Maintenance Supervisory salaries Costs Incurred 5,000 10,000 Total Cost Cost/Unit Total Cost Cost/Unit $8,000 $1.60 $16,000 $1.60 9.500 1.90 19.000 1.90 2.000 0.40 3,300 0.33 4,000 0.80 4,000 0.40 800 0.16 1.400 0.14 1.000 0,20 1.000 0.10 (b) Classify each cost above as either variable, fixed or mixed. (b) Classify each cost above as either variable, fixed, or mixed. Production Costs Direct materials > Direct labor Utilities

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