Sabrina Company manufactures large leisure boats. The following schedule shows total fixed costs at various levels of boat production:

Units Produced Total Fixed Costs

0–100.........$150,000

101–400.......250,000

401–900.......400,000

1. What is the fixed cost per unit when 75 boats are produced?

2. What is the fixed cost per unit when 300 boats are produced?

3. What is the fixed cost per unit when 750 boats are produced?

4. Plot total fixed costs on a graph similar to that shown in Exhibit21.2.

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$2,500 2,000 Relevant range 1,500 1,000 500 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Gallons of ice croam produced weekly Total production line supervisor costs ($)