Problem 2-53 Fixed and Variable Costs; Forecasting (LO 2-7, 2-8) Toledo Toy Company incurred the following costs during 20x4. The company sold all of its products manufactured during the year. Direct material Direct labor Manufacturing overhead 5,000,000 2,300,000 Utilities (primarily electricity) Depreciation on plant and equipment Insurance Supervisory salaries Property taxes 140,000 230,000 180,000 300,000 230,000 Selling costs Advertising Sales commissions 185,000 90,000 Administrative costs: Salaries of top management and staff Office supplies Depreciation on building and 373,000 50,000 80,000 equipment During 20x4, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x5 are slightly better. Jared Lowes, the marketing