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Mike's Radiator Services specializes in the repair and replacement of radiators for passenger vehicles. Variable and fixed costs related to installation activities for the most recent month (January) are listed below: 155 $77,500 7,750 Item Number of radiators replaced Variable expenses: Direct materials (new radiators) Direct labour (2 hours per installation) Indirect materials Fixed expenses: Installation supervisor's wages Equipment depreciation Insurance and utilities for garage 775 $15, 128 1,891 1,426 Required: 1. Calculate the per unit amounts for each of the variable expense and fixed expense items in January. Item Per Unit Variable expenses Direct materials (new radiators) Direct labour (2 hours per installation) Indirect materials Fixed expenses: Installation supervisor's wages Equipment depreciation Insurance and utilities for garage 2. Mike expects that 124 radiators will be installed in February and that this level of activity is within the relevant range for all variable and fixed expenses. a & b-1. Calculate the total expense and per unit amounts for each of the variable and fixed cost items above. (Round "per unit" answers to 2 decimal places.) Item February (Total Cost) February Per Unit Variable expenses: Direct materials (new radiators) Direct labour (2 hours per installation) Indirect materials Fixed expenses Installation supervisor's wages Equipment depreciation Insurance and utilities for garage Direct labour (2 hours per installation) Indirect materials Fixed expenses Installation supervisor's wages Equipment depreciation Insurance and utilities for garage b-2. Explain any differences in the per unit amounts between January and February. 3. Which, if any, of the costs shown above would be considered sunk costs? Why

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