Question One: The Plastechnics Company began operations several years ago. The company's product requires materials that cost JOD 25 per unit. The company employs a production supervisor whose salary is JOD 2,000 per month. Production line workers are paid JOD 15 per hour to manufacture and assemble the product. The company rents the equipment needed to produce the product at a rental cost of JOD 1,500 per month. The building is depreciated on the straight-line basis at JOD 9,000 per year. The company spends JOD 40,000 per year to market the product. Shipping costs for each unit are JOD 20 per unit. The company plans to liquidate several investments in order to expand production. These investments currently earn a return of JOD 8,000 per year. Required: Complete the answer sheet below by placing an "X" under each heading that identifies the cost involved. The "Xs" can be placed under more than one heading for a single cost, e.g., a cost might be a sunk cost, an overhead cost, and a product cost.

Variable Cost Fixed Cost Direct Materials Cost Direct Labor Cost Manufacturing Overhead Cost Period Cost Opportunity Cost Sunk Cost Materials

Production supervisor salary

Production line worker wages

Equipment rental

Building depreciation

Marketing costs

Shipping cost Return on investments