Module 5 Textbook Problem 2 Learning Objectives: 5-3 Identify and describe fixed, variable, and mixed cost behavior 5-4 Demonstrate the effects of operating leverage on profitability The following variable production costs apply to goods made by Perez Manufacturing Corporation: Item Materials Labor Variable overhead Total Cost per unit $13.00 8.00 1.20 $22.20 Required Determine the total variable production cost, assuming that Perez makes 7,000, 17,000, or 27,000 units. Units Produced 7,000 17,000 27,000 Total variable cost