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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 0-1,600 units, and monthly production costs for the production of 1,200 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 ($310 fixed) Depreciation Total Cost $2,900 7,100 560 3,400 530 700 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 0-1,600 units. Enter answer as an equation in the form of ya ox. 4. Calculate Morning Dove's expected total cost if production increased to 1,400 units per month. Enter answer as an equation in th 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 co- thereof). (Round your per unit value to 2 decimal places.) Production Costs Direct Materials Direct labor Utilities Supervisor's Salary Maintenance Depreciation Behavior Rate per Unit per Month per Unit per Month per Unit per Month per Unit per Month per Unit per Month per Unit per Month Required 1. Required 2 > Book Required 1 Required 2 Required 3 Required 4 Hint Print Required 4 bore cost per unit for Morning Dove. (ROL Determine the total fixed cost per month and the calculations and variable cost per unit to 2 decimal places.) erences Total Variable Cost per Unit Total Fixed Cost per Month Hint Required 1 Required 2 Required 3 Required 4 Print rences State Morning Dove's linear cost equation for a production level of 0-1,600 units. Enter answe y=a+bx. (Round your intermediate calculations and variable cost per unit to 2 decimal plac Total Cost = Required 1 Required 2 Required 3 Required 4 Calculate Morning Dove's expected total cost if production increased to 1,400 units per month. Enter ans the form of y = a + bx. (Round intermediate calculations and variable cost per unit to 2 decimal places.) a + b x < Required 3 y Required 4 >
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