E5-2 Kozy Enterprises is considering manufacturing a new product. It projects t

E5-2
Kozy Enterprises is considering manufacturing a new product. It
projects the cost of direct materials and rent for a range of output as
shown below.Output in Units Rent Expense Direct Materials 1000 $5000 $4000 2000 5000 6000 3000 5000 7800 4000 7000 8000 5000 7000 10000 6000 7000 12000 7000 7000 14000 8000 7000 16000 9000 7000 18000 10000 10000 23000 11000 10000 28000 12000 10000 36000 Instructions(a) Diagram the behavior of each cost for output ranging from 1000 to 12000 units.(b) Determine the relevant range of activity for this product.(c) Calculate the variable cost per unit within the relevant range.(d) Indicate the fixed cost within the relevant range.