Based on this information it has been determined that Utilities Expense is a mixed cost and rent expense is a fixed cost while direct materials is variable cost. Explain in narrative form why this is true and be sure to provide definitions of what exactly mixed, fixed and variable costs are.Also, include in your answer a definition and illustration of step-wise cost.

3) Select cost information for Seacrest Enterprises is as follows: Direct materials Utilities expense Rent expense 1,000 units of output Total Cost/Unit $ 5,000 $ 5.00 $ 1,000 $ 1.00 $ 4,000 $4.00 5,000 units of output Total Cost/Unit $ 25,000 $ 5.00 $ 3,750 $ 0.75 $ 4,000 $ 0.80