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 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 Rent Maintenance Supervisory salaries (b) Classify each cost above as either variable, fixed, or mixed. Production Costs Direct materials Direct labor > Utilities V Rent Maintenance