first ITU chief financial officer of Berthier that explains which costilly appium dollar differences will...
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first ITU chief financial officer of Berthier that explains which costilly appium dollar differences will be between this approach and others. ariable, ts. Exercises E20-1 Bonita Company manufactures a single product. Annual production costs incurred in the manufactu process are shown below for two levels of production: Costs Incurred 5,000 Units 10,000 Units Production Direct materials $ 8,000 $16,000 Direct labour 9,500 19,000 Utilities 2,000 3,300 Rent 4,000 4,000 Maintenance 800 1,400 Supervisory salaries 1,000 1,000 Total cost $25,300 $44,700 Instructions (a) Define these terms: variable costs, fixed costs, and mixed costs. (b) Classify each production cost listed as variable, fixed, or mixed. (c) Calculate the expected production costs if 9,000 units are produced
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