Hughes Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,000 units. The Utilities and Maintenance are mixed costs. The fixed portions of these costs are $200 and $400, respectively. 
Instructions
Calculate the expected costs to be incurred when production is 4,000 units. Use your knowledge of cost behavior to determine which of the other costs are fixed or variable.
Definitions:
Fixed Costs
Expenses that do not change with the level of production or sales in the short term, such as rent or salaries.
Unit Selling Price
The amount of money charged to the customer for a single unit of a product or service.
Unit Sales Price
The price at which a single unit of product is sold, reflecting the cost plus any markup or minus any discounts.
Unit Variable Cost
The cost per unit to produce a single product, encompassing materials, labor, and all other expenses that fluctuate with the level of production.
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