Todd Radford has invented a new type of low-friction broom. After giving the matter much thought. Todd is pretty sure he will quit his $2,000 per month job with a janitorial service and produce and sell the brooms full time. Todd will rent a small building and use it as a production plant. The rent will be $1.500 per month. Todd will rent production equipment at a cost of $550 per month. The cost of materials for each broom will be $11.50. Todd will hire workers to produce the brooms. They will be paid $4.25 for each completed unit. Todd will rent a room in the house next door for use as his sales office. The rent will be $250 per month. He has arranged for the telephone company to add voicemail to his home phone to get after-hours messages from customers. The addition of voicemail will increase his monthly phone bill by $5. Todd has some money in savings that is earning interest of $1,100 per year. These savings will be withdrawn and used for about a year to get the business going. To sell his brooms. Todd will advertise heavily in the local area. Advertising costs will be $450 per month. In addition, Todd will pay a sales commission of $0.80 for each broom sold. For the time being. Todd does not intend to draw any salary from the new company. Todd has already paid the legal and filing fees to incorporate his business. These fees amounted to $1,500. Required: 1. Listed below are different costs associated with the new company. Choose Yes/No under each heading that helps to describe the type of cost involved Product Cost Name of the Cost Variable Cost Fixed Cost Direct Materials Direct Labour Manufacturing Period (Selling and Opportunity Overhead Administrative) Cost Cost Yes Sunk Cost Yes Yes Yes Todd's present salary of $2,000 per month Rent on the production building. 51,500 per month Rent of production equipment, $550 per month Materials for producing brooms, at $11.50 each Labour cost of producing brooms, at $4.25 each Rent of room for a sales office, $250 per month Voice mail. $5 per month Interest lost on savings account. $1,100 per year Advertising cost. $450 per month Sales commission, at $0.80 per broom Yes Legal and filing fees, $1.500 Yes Yes Yes Yes Yes