Select cost information for Seacrest Enterprises is as follows:

	1,000 units of output		5,000 units of output
	Total	Cost/Unit		Total	Cost/Unit
Direct materials	$	5,000	$	5.00		$	25,000	$	5.00
Utilities expense	$	1,000	$	1.00		$	3,750	$	0.75
Rent expense	$	4,000	$	4.00		$	4,000	$	0.80

Based on this information:

Select one:

a. Both direct materials and rent expense are variable costs.

b. Utilities expense is a mixed cost and rent expense is a variable cost.

c. Utilities expense is a mixed cost and rent expense is a fixed cost.

d. Direct materials is a fixed cost and utilities expense is a mixed cost.

e. Both direct materials and utilities expense are mixed costs.