Listed below are selected costs of sports car manufacturer at a production level of 4,000 cars.(a)Identify three fixed costs.(b)Support your answer by illustrating the cost behavior pattern per unit and in total as the annual volume of motorcycles produced increases from 4,000 cars to 8,000 cars for one fixed cost.(Note: The production increase is within the relevant range.)
$\begin{array}{lr}
\text { Monthly machine rental charge } & \$ 8,000 \
\text { Monthly insurance premiums on the plant } & 800 \
\text { Sports car tire cost (per tire) } & 100\
\text { Salaried employees' weekly payroll cost }&51,000\
\text { Manufacturing hourly employees' weekly payroll}&88,000\
\text { Depreciation on the equipment for the month}&6,000\
\text { Car battery (one battery)}&70
\end{array}$

Question

Listed below are selected costs of sports car manufacturer at a production level of 4,000 cars.(a)Identify three fixed costs.(b)Support your answer by illustrating the cost behavior pattern per unit and in total as the annual volume of motorcycles produced increases from 4,000 cars to 8,000 cars for one fixed cost.(Note: The production increase is within the relevant range.)
 $\begin{array}{lr}
\text { Monthly machine rental charge } & \$ 8,000 \
\text { Monthly insurance premiums on the plant } & 800 \
\text { Sports car tire cost (per tire) } & 100\
\text { Salaried employees' weekly payroll cost }&51,000\
\text { Manufacturing hourly employees' weekly payroll}&88,000\
\text { Depreciation on the equipment for the month}&6,000\
\text {  Car battery (one battery)}&70
\end{array}$

Quizplus · Accepted Answer

The Answer of Listed below are selected costs of sports car manufacturer at a production level of 4,000 cars.(a)Identify three fixed costs.(b)Support your answer by illustrating the cost behavior pattern per unit and in total as the annual volume of motorcycles produced increases from 4,000 cars to 8,000 cars for one fixed cost.(Note: The production increase is within the relevant range.)
 $\begin{array}{lr}
\text { Monthly machine rental charge } & \$ 8,000 \
\text { Monthly insurance premiums on the plant } & 800 \
\text { Sports car tire cost (per tire) } & 100\
\text { Salaried employees' weekly payroll cost }&51,000\
\text { Manufacturing hourly employees' weekly payroll}&88,000\
\text { Depreciation on the equipment for the month}&6,000\
\text {  Car battery (one battery)}&70
\end{array}$

Listed Below Are Selected Costs of Sports Car Manufacturer at a Production