PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units.

Direct materials$ 7,500Direct labor18,000Utilities2,100Property taxes1,000Indirect labor4,500Supervisory salaries1,900Maintenance1,100Depreciation2,400

The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $300 and $200, respectively.

Instructions

1. Identify the above costs as variable, fixed, or mixed.
2. Calculate the expected costs when production is 5,000 units.

Explain assumptions underlying CVP analysis.