emerson buildings block acquired its factory building about 20 years ago. For a number of years the company has rented out a small, unused part of the building. The renter's lease will expire soon. Rather than renewing the lease, Build It Quick is considering using the space itself to manufacture a new product. Under this option, the unused space will continue to be depreciated on a straight-line basis, as in past years.

Direct materials and direct labour cost for the new product would be $100 per unit. In order to have a place to store finished units of the new product, the company would have to rent a small warehouse nearby. The rental cost would be $2,500 per month. It would cost the company an additional $6,000 each month to advertise the new product. A new production supervisor would be hired to oversee production of the new product who would be paid $4,000 per month. The company would pay a sales commission of $15 for each unit of product that is sold.

Required:

Complete the chart below by placing an "X" under each column heading that helps to identify the costs listed to the left. There can be "X's" placed under more than one heading for a single cost. For example, a cost might be a product cost, an opportunity cost, and a sunk cost; there would be an "X" placed under each of these headings on the answer sheet opposite the cost.

		Opportunity cost	Sunk cost	Variable cost	Fixed cost	Product cost	Selling & Admin cost	Differential cost *
Rent on Unused Factory space
Depreciation on factory space
Direct material and direct labour cost
Rental cost of the small warehouse
Advertising cost
Production Supervisor's salary
Sales commissions

*Between the alternatives of (1) renting the space out again or (2) using the space to produce the new product.

Please show all steps