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finance Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production. | **Costs Incurred** | | | | | |-------------------------|----------------|---------------|----------------|---------------| | **Production in Units** | **5,000** | | **10,000** | | | **Production Costs** | **Total Cost** | **Cost\Unit** | **Total Cost** | **Cost\Unit** | | Direct materials | $8,000 |$1.60 | $16,000 |$1.60 | | Direct labor | 9,500 | 1.90 | 19,000 | 1.90 | | Utilities | 2,000 | 0.40 | 3,300 | 0.33 | | Rent | 4,000 | 0.80 | 4,000 | 0.40 | | Maintenance | 800 | 0.16 | 1,400 | 0.14 | | Supervisory salaries | 1,000 | 0.20 | 1,000 | 0.10 | ***Instructions*** (a) Define the terms variable costs, fi xed costs, and mixed costs. Verified answer
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