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Spirit Company produces baseball caps. The company incurred the following costs to produce 1 2 , 0 0 0 caps last month: Cardboard for the

Spirit Company produces baseball caps. The company incurred the following costs to produce 12,000 caps last month:
Cardboard for the brims $5,280
Cloth 13,200
Plastic for headbands 6,600
Straight-line depreciation 7,920
Supervisors salaries 21,120
Utilities 3,960
Total $58,080
a. What did each cap component cost on a per-unit basis? Enter in table below.
b. What is the probable type of behavior that each of the costs exhibits? Enter in table below.
Component (a) Cost Per-Unit (b) Cost Behavior
Cardboard for the brims Answer
Answer
Cloth Answer
Answer
Plastic for headbands Answer
Answer
Straight-line depreciation Answer
Answer
Supervisors salaries Answer
Answer
Utilities Answer
Answer
c. The company expects to produce 10,000 caps this month. Would you expect each type of per-unit cost to increase, decrease not change, or is the change not determinable?
Component Change in Per-Unit Cost
Cardboard for the brims Answer
Cloth Answer
Plastic for headbands Answer
Straight-line depreciation Answer
Supervisors salaries Answer
Utilities Answer

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