Using cost behavior patterns
Response to the following problem:
MFG Company experiences the following cost behavior patterns each week: Fixed costs: supervisor's salary $1,000; factory rent $2,500 Mixed costs: utilities $1,500 + $5.25 per unit Variable costs per unit: manufacturing labor wages $20; supplies used in production $8.50; packaging cost $2.25; warranty cost $4
Required: Compute total costs to be incurred for a week with 2,750 units of activity.