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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 to 1,800 units, and monthly production costs for the production of 1,500 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs Total Cost
Direct materials $ 1,900
Direct labor 8,100
Utilities ($110 fixed)560
Supervisors salary 2,800
Maintenance ($340 fixed)490
Depreciation 850
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 0 to1,800 units. Enter answer as an equation in the form of y = a + bx.
Calculate Morning Doves expected total cost if production increased to 1,700 units per month. Enter answer as an equation in the form of y = a + bx.

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