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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 0 to 1,600 units, and monthly production costs for the production of 1,200 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production CostsTotal CostDirect materials$ 1,500Direct labor7,300Utilities ($140 fixed)570Supervisors salary3,400Maintenance ($270 fixed)540Depreciation750

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 0 to1,600 units. Enter answer as an equation in the form of y = a + bx.
4. Calculate Morning Doves expected total cost if production increased to 1,400 units per month. Enter answer as an equation in the form of y = a + bx.