Extra Credit [2 points) 1. Smith Tooling Inc. manufacturers and sells tools and equipment for business and retail customers. For their main products, the Company incurs approximately the following per unit costs: $12.75 in Direct Materials $21.90 in Direct Labor $3.87 in Electricity $4.21 in Rent Expense for their Retail Store Which of the above costs would be including in Manufacturing Overhead? Why? 2. What concept is being portrayed in the following graph? COSTS PER PASSENGER MILE 0.35 $0.31 0.30 0.25 Average variable unit cost 10 cents per mile) $0 24 $0.205 0.20 $0.21 Average total unit cost Cost per mile dolas) 0.15 $0.16 0.10 $0.105 Average fixed unit cost 0.05 OL 400,000 200,000 300.000 Passenger miles per month