Montana Company manufactures chocolate candy. Its manufacturing costs are as follows:

Annual fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000

Variable costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2 per box of candy

1. Plot variable costs, fixed costs, and total costs on a graph for activity levels of 0 to 30,000 boxes of candy.

2. Plot a revenue line on the graph, assuming that Montana sells the chocolates for $5 a box.