In the past year, Williams Mold & Machine had sales of $7,000,000 and total production costs of $5,000,000. In the coming year, the company believes that sales and production can be increased by 25 percent but this will require adding a second production shift to work from 4:00 P.M. to 1:00 A.M.
Required:
a. Indicate three production costs that are likely to increase because of the addition of a second production shift.
b. What production cost most likely will not increase when the second shift is added?