Integrated Concept Review $($Graded$)i$

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Required:

Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as variable or fixed with respect to the number of units produced and sold; and second, as a selling and administrative cost or a product cost. $($If the item is a product cost, it should also be classified as either direct or indirect.$)$

Compute the average product cost of one patio set.

Assume production drops to only $1,000$ sets annually. Would you expect the average product cost per set to increase, decrease, or remain unchanged?