1.
Fixed Cost:
Fixed cost refers the cost which remains constant for particular time duration and there is no effect over it of the level of production.
Variable Cost:
Variable cost refers the cost which varies due to the change in the level of production. Higher production level refers higher the variable cost, and lower production level refers lower the variable cost.
To identify: The variable
2.
To prepare: The graph for the variable and fixed manufacturing costs per month.
3.
To identify: The total manufacturing cost of each vehicle if 100 and if 225 vehicles are produced each month and difference between the manufacturing costs per unit.
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