CASE 1: Bendix Ltd is a car parts manufacturer. It supplies you the following information regarding costs at various levels of monthly production: Cost Items Production volume Production volume 8 000 units 12 000 units Direct materials $80 000 $120 000 Direct labour 64 000 96 000 Indirect materials 24 000 36 000 Supervisors' salaries 12 000 12 000 Depreciation on plant 10 000 10 000 Maintenance Utilities 32 000 44 000 15 000 21 000 Insurance on plant and equipment 1 600 1 600 Property taxes on plant 2000 2000 Total $241 600 $342 600 In the above table there are some pure variable costs, some pure fixed costs and some mixed costs. Required: 1. Identify and make separate lists of the pure variable costs, pure fixed costs and mixed costs and calculate their totals. 2. Split the total mixed costs into Fixed and Variable elements using High/Low method, calculate total fixed cost and develop the equation for total monthly production costs? 3. Explain to the management how to use the cost equation you developed in (2) above to predict total costs for the monthly production volume of 9 000 units, and also calculate the correct unit cost.