Select the graph that matches the numbered manufacturing cost data. Indicate by letter which graph best fits the situation or item described.

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$($Click to view the$$ graphs.$)$

The vertical axes of the graphs represent total$$ cost$,$ and the horizontal axes represent units produced during a calendar year. In each$$ case, the zero point of dollars and production is at the intersection of the two axes. The graphs may be used more than once.

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Part $1$

Part $2$

$1.$

Annual depreciation of equipment, where the amount of depreciation charged is computed by the

machine$-$hours method.

$2.$

Electricity bill $-$ a flat fixed charge, plus a variable cost after a certain number of kilowatt$-$hours are used,

in which the quantity of kilowatt$-$hours used varies proportionately with quantity of units produced.

$3.$

City water bill, which is computed as follows:

First $1,000,000$ gallons or less

$$1,000$ flat fee

Next $10,000$ gallons

$$0\mathrm{.}003$ per gallon used

Next $10,000$ gallons

$$0\mathrm{.}006$ per gallon used

Next $10,000$ gallons

$$0\mathrm{.}009$ per gallon used

and so on

and so on

The gallons of water used vary proportionately with the quantity of production output.

$4.$

Cost of direct materials, where direct material cost per unit decreases with each pound of material used $($for

example, if $1$ pound is used, the cost is $$10$; if $2$ pounds are used, the cost is $$19\mathrm{.}98$; if $3$ pounds are used

the cost is $$29\mathrm{.}94),$ with a minimum cost per unit of $$9\mathrm{.}20.$

$5.$

Annual depreciation of equipment, where the amount is computed by the straight$-$line method. When the

depreciation schedule was prepared, it was anticipated that the obsolescence factor would be greater than

the wear$-$and$-$tear factor.

$6.$

Rent on a manufacturing plant donated by the city, where the agreement calls for a fixed$-$fee payment

unless $200,000$ labor$-$hours are worked, in which case no rent is paid.

$7.$

Salaries of repair personnel, where one person is needed for every $1,000$ machine$-$hours or less $($that is$,0$

to $1,000$ hours requires one person, $1,001$ to $2,000$ hours requires two people, and so on$.)$

$8.$

Cost of direct materials used $($assume no quantity discounts.$)$

$9.$

Rent on a manufacturing plant donated by the county, where the agreement calls for rent of $$100,000$ to be

reduced by $$1$ for each direct manufacturing labor$-$hour worked in excess of $200,000$ hours, but a minimum

rental fee of $$20,000$ must be paid. same graphs as this question