### Educational Material: Cost Analysis and Fixed vs Variable Costs**Background Information:**Franklin Training Services (FTS) specializes in providing corporate employees with training on computer software. The training sessions are conducted on the clients' premises using their equipment. The primary cost incurred by FTS is the instructors' salaries, with each course taught costing $5,300. Recently, FTS agreed to offer this training to employees of Novak Incorporated for $470 per student, with an expectation of 20 students attending.---**Problem 11-25A (Algo) Part 3: Cost Calculation for Custom Plaques**FTS provides a custom wood plaque to each student who completes the training course. The plaques are uniquely manufactured, and any extras not used during the course are discarded. Before starting the course, FTS ordered 20 plaques based on Novak's estimate. The plaques cost $30 each, and they are available to students who complete the course for $42 each.**Tasks:**1. **Calculate the total and per unit plaque costs** if 17, 20, or 22 students complete the course.2. **Classify the plaque costs** as fixed or variable relative to the number of students attending the course.**Data Table for Calculation:**- **Number of Students Completing the Course:** Options are 17, 20, and 22.- **Columns for Entry:** - Total cost of workbooks (For calculation purposes, this refers to total plaque cost.) - Cost per unit (total cost divided by the number of students completing the course).**Note on Costs:**- Plaques are ordered before the course begins based on estimations, adding an element of planning and cost strategy related to inventory.**Instructions:**- Calculate costs accurately and round answers for cost per unit to two decimal places.This exercise helps in understanding economic concepts like fixed and variable costs while highlighting real-world scenarios where advance planning is necessary to manage resources efficiently and cost-effectively.

Fixed cost This cost does not change when sales or production volumes increase or decrease. This is mainly because they are not directly linked with manufacturing of a product. Fixed costs are also considered as indirect costs. Variable cost Variable costs are increase or decrease depending upon a company's production or sales volume and they rise when production increases and fall as production decreases. These costs are also considered as direct cost. K) Calculation of total workbook cost Calculation of total workbook cost = 20 plaques @ $30 per each = $600 Therefore, total workbook cost or total plaques cost is $600 Plaques cost per unit = Total plaques cost / Number of students Number of students completing the course 17 20 22 Total cost of workbooks $600 $600 $600 Cost per unit $35.29 ($600/17) $30 ($600/20) $27.27 ($600/22) L) Classification of costs The total cost of plaques can be considered as fixed cost. Because it will not change to change of number students completing the course. 20 plaques are pre ordered one and $30 per cost is includes a royalty fee, so it will never change. So total cost of plaques that is $600 is a fixed cost.