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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 to units, and monthly production costs for the production of units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.
Production Costs Total Cost
Direct materials $
Direct labor
Utilities $ fixed
Supervisors salary
Maintenance $ fixed
Depreciation
Required:
Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit or combination thereof
Determine the total fixed cost per month and the variable cost per unit for Morning Dove.
State Morning Doves linear cost equation for a production level of to units. Enter answer as an equation in the form of y a bx
Calculate Morning Doves expected total cost if production increased to units per month. Enter answer as an equation in the form of y a bx
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