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Incremental Costs The Benson Company has collected the follwing production cost data: Production 0 Units 10 Units 20 Units Depreciation $1000 $1000 $1000 Supplies 0

Incremental Costs

The Benson Company has collected the follwing production cost data:

Production

0 Units 10 Units 20 Units
Depreciation $1000 $1000 $1000
Supplies 0 800 1600
Property Taxes 500 500 500
Labor 0 2000 4000
Materials 0 3000 6000

In addition, the company has found that repair and maintenance expense follows the following stepbehavior:

Production Repair and Maintenance Expense
0-5 units $400
6-10 units 800
11-15 units 1200
16-20 units 1600

Required:

What would be the incremental production costs for an additional 10 units after the Benson Company has produced 8 units? (Explain each step and calculation)

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