Exercise 5. Manufacturing and non-manufacturing costs. Greencare Corporation Greencare Corporation produces power lawn mowers. The company reported the following data for its most recent year of activity: Production 30,000 units Sales 30,000 units at $ 300 each Inventories None Costs: Direct materials: $1,500,000 Direct labor 450,000 Overhead: Indirect materials 100,000 100,000 Supervision Depreciation Utilities 440,000 50,000 Selling: Commissions (10% of selling price) 900,000 Salaries 150,000 Administrative 180,000 1. Prepare a cost formula for manufacturing costs, expressed as TC =FC +AVC x Units. 2. Compute the unit cost of production if production is 30,000 units; 15,000 units; 40,000 units. Why does the unit cost change? 3. What is the unit cost of direct materials at each of the three production levels in (2)? of direct labor? of overhead? 4. Compute the total cost of operating the firm if Greencare produces and sells 30,000 units; 15,000 units; 40,000 units