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Incremental Costs The Benson Company has collected the follwing production cost data: Production 0 Units 10 Units 20 Units Depreciation $1,000 $1,000 $1,000 Supplies 0

Incremental Costs

The Benson Company has collected the follwing production cost data:

Production

0 Units 10 Units 20 Units

Depreciation $1,000 $1,000 $1,000

Supplies 0 800 1,600

Property Taxes 500 500 500

Labor 0 2,000 4,000

Materials 0 3,000 6,000

In addition, the company has found that repair and maintenance expense follows the followingstep behavior:

Production Repair and Maintenance Expense

0-5 units $400

6-10 units 800

11-15 units 1,200

16-20 units 1,600

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 calculations)

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