50.1K

Verified Solution

Link Copied!

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 1,700 units, and monthly production costs for the production of 1,300 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. 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 Dove's linear cost equation for a production level of 0 to1,700 units. Enter answer as an equation in the form of y=a+bx. 4. Calculate Morning Dove's expected total cost if production increased to 1,500 units per month. Enter answer as an equation in the form of y=a+bx. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). Note: Round your per unit value to 2 decimal places. Complete this question by entering your answers in the tabs below. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. Note: Round your intermediate calculations and variable cost per unit to 2 decimal places. Total variable cost per unit Total fixed cost per month Complete this question by entering your answers in the tabs below. State Morning Dove's linear cost equation for a production level of 0 to 1,700 units. Enter answer as an equation in the form of y=a+bx. Note: Round your intermediate calculations and variable cost per unit to 2 decimal places. Complete this question by entering your answers in the tabs below. Calculate Morning Dove's expected total cost if production increased to 1,500 units per month. Enter answer as an equation in the form of y=a+bx. Note: Round intermediate calculations and variable cost per unit to 2 decimal places

Answer & Explanation Solved by verified expert

See Answer