Ceradyne projects its factory rent to be $6,000 in August when 8,600 units are expected to be produced. If rent is a fixed cost, and if production is expected to drop to 7,000 units in September, what is the expected cost of rent in September?

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3. Triton Company's copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of copies: Salaries (fixed) $93,750 Employee benefits (fixed) 10,000 Depreciation of copy machines (fixed) 10,000 Utilities (fixed) 5,000 Paper (variable, 1 cent per copy) 50,000 Toner (variable, 1 cent per copy) 50,000 The costs are assigned to two cost pools, one for fixed and one for variable costs. The costs are then assigned to the sales department and the administrative department. Fixed costs are assigned on a lump-sum basis, 40 percent to sales and 60 percent to administration. The variable costs are assigned at a rate of 2 cents per copy. Assuming the following copies were made during the year, 2,564,500 for sales and 2,790,250 for administration, calculate the copy department costs allocated to sales. 5. Mama Italiano Sauce is in the process of preparing a production cost budget for May. The actual costs in April were: Mama Italian Sauce Production Cost Budget April 2008 Production - Jars of sauce 20,000 Ingredient cost (variable): $16,000 Labor cost (variable): 9,000 Rent (fixed): 4,000 Depreciation (fixed): 6,000 Other (fixed): 1,000 Total: $36,000 Using this information, prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 25,000 jars of sauce reflecting anticipated sales increase related to a new marketing campaign. 6. Mama Italiano is currently producing and selling jars of sauce. The jars of sauce sell for $4 per jar. The company is considering lowering the price to $3.70 per jar. Suppose this action will increase sales. What is the incremental costs associated with producing an extra 70,250 jars of sauce? 7. The company is currently producing and selling 250,000 jars of sauce annually. The jars of sauce sell for $4 per jar. The company is considering lowering the price to $3.60 per jar. Suppose this action will increase sales to 303,000 jars of sauce. What is the incremental revenue associated with the price reduction of sauce