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Kozy Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output quantities as shown

Kozy Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output quantities as shown below:

Output in Units Rent Expense Direct Materials
1,000 $5,000 $ 4,000
2,000 5,000 6,000
3,000 5,000 7,800
4,000 7,000 8,000
5,000 7,000 10,000
6,000 7,000 12,000
7,000 7,000 14,000
8,000 7,000 16,000
9,000 7,000 18,000
10,000 10,000 23,000
11,000 10,000 28,000
12,000 10,000 36,000

(a) Based on the information above, choose the correct diagram for the behaviour of each cost for output ranging from 1,000 to 12,000 units.

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