Listed here are the total costs associated with the production of 10,000 sports water bottles manufactured by Thirst Quenchers Inc. The water bottles sell for $12 each.

Costs	Cost by Behavior		Cost by Function
	Variable	Fixed	Product	Period
Plastic for bottles - $20,000	$20,000		$20,000
Wages of assembly workers - $5,000
Rent on factory - $6,000
Office workers' salaries - $36,000
Insurance - $2,000 per year
Upper management salaries - $100,000
Annual flat fee for maintenance - $15,000
Testing - $1 per bottle
Sales commissions - $0.40 per unit
Equipment depreciation - $7,200

Required

1. Classify each cost and its amount as (a) either fixed or variable and (b) either product or period (the first cost is completed as an example).

2. Compute the manufacturing cost per sports water bottle

Analysis Component

3. Assume that 12,000 sports water bottles are produced in the next month. What do you predict will be the total cost of plastic for the bottles and the per unit cost of the plastic for the bottles. Explain.

4. Assume that 12,000 sports water bottles are produced in the next month. What do you predict will be the total cost of insurance and the cost per unit of insurance? Explain.