Cashion Company produces chemical mixtures for veterinary pharmaceutical companies. Its factory has four mixing fines that mix various powdered chemicals together according to specified formulas. Each line can produce up to 5,000 barrels per year Each line has one supervisor who is paid $34.000 per year. Depreciation on equipment averages $16,000 per year. Direct materials and power cost about $4.50 per unit Required: 1. Assume that sales range from 0 to 20,000 units. Based on the information provided, select the correct graph for each of these three coste camere depreciation, supervisore mages and direct materials and power Graphs of equipment depreciatiom b. Equipment Depreciation quipment Depreciation $20.000 $18.000 120.000 315.000 110,000 55.000 10 3 510,000 35,000 $0 5,000 0 5,000 10.000 15.000 20,000 25,000 Number of units 10.000 15.000 20.000 25.000 Number of Units Equipment Depreciation Equipment Depreciation $20,000 $15,000 $20,000 315,000 3 110,000 $5,000 3510,000 $5,000 30 30 0 0 5,000 10,000 15.000 20,000 25,000 Number of Units 5,000 10,000 15,000 20,000 25.000 Number of Units The correct answer is Graph of supervisors' wages: a. b. Supervisors' Wages Supervisors' Wages $160,000 5140,000 5120,000 $160,000 $140,000 $120,000 $100,000 $50,000 $100,000 500,000 Cost 560,000 540,000 520,000 30 $60,000 340,000 $20,000 $0 5.000 15.000 20.000 25.000 10,000 Number of Units 5.000 20,000 25.000 10.000 15,000 Number of Units c. d. Supervisors' Wages Supervisors' Wages 550,000 $140.000 $150,000 $140.000 $120.000 $120.000 5400,000 Cost $100,000 550.000 500,000 300.000 540,000 560.000 560.000 520,000 50 $20,000 50 5000 100 15.000 Number of Units 20,000 25,000 5,000 20,000 25,000 10.000 15.000 Number of Units The correct answer is The correct answer is Graph of direct materials and power: a b. Direct Materials and Power Direct Matenals and Power 1100.000 SO 10.000 . 16.00 3 00 $20.000 50 3.000 50 1500 1.000 25.000 500 10,000 1. 200000 C d. Direct Materials and Power Direct Meals and Power 2.000 51000 S. S. 40.000 12. D S. 1,000 15.00 20. 1.00 100 000 2. The correct answer is 2. Assume that the normal operating range for the company is 16,000 to 19,000 units per year. How would you classify each of the three types of cost? Equipment depreciation: Supervisors wages: Direct materials and power