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Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 01,900 units, and monthly production costs for the production of 1,400 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Direct materials Direct labor Utilities ($140 fixed) Supervisor's salary Maintenance ($280 fixed) Depreciation Total Cost $ 2,300 6,900 590 3,100 480 800 Required: 1. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. 3. State Morning Dove's linear cost equation for a production level of 0-1,900 units. Enter answer as an equation in the form of y = a + bx. 4. Calculate Morning Dove's expected total cost if production increased to 1,600 units per month. Enter answer as an equation in the form of y = a + bx. Required 1 Required 2 Required 3 Required 4 Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). (Round your per unit value to 2 decimal places.) Production Costs Rate Direct Materials $ per Month Behavior Variable Variable Mixed $ 1.64 per Unit 4.93 per Unit 0.32 per Unit per Month $ per Month Direct labor Utilities Supervisor's Salary Maintenance Depreciation Fixed per Unit $ 3,100 per Month Mixed per Unit per Month Fixed per Unit per Month Required 1 Required 2 Required 3 Required 4 Determine the total fixed cost per month and the variable cost per unit for Morning Dove. (Round your intermediate calculations and variable cost per unit to 2 decimal places.) Total Variable Cost per Unit Total Fixed Cost per Month Required 1 Required 2 Required 3 Required 4 State Morning Dove's linear cost equation for a production level of 0-1,900 units. Enter answer as y = a + bx. (Round your intermediate calculations and variable cost per unit to 2 decimal places.) equation in the form of Total Cost = Required 1 Required 2 Required 3 Required 4 Calculate Morning Dove's expected total cost if production increased to 1,600 units per month. Enter answer as an equation in the form of y = a + bx. (Round intermediate calculations and variable cost per unit to 2 decimal places.) b x $
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