Required information

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 01,900 units, and monthly production costs for the production of 1,600 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs	Total Cost
Direct materials	$	2,100
Direct labor		6,700
Utilities ($150 fixed)		570
Supervisors salary		3,500
Maintenance ($280 fixed)		510
Depreciation		900

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 Doves linear cost equation for a production level of 01,900 units. Enter answer as an equation in the form of y = a + bx.

4. Calculate Morning Doves expected total cost if production increased to 1,800 units per month. Enter answer as an equation in the form of y = a + bx.