Bellis Company produces pottery items. Bellis sells each item for an average sales price of $10. The company has a choice of two production methods: hand-crafting and painting versus machine production, with costs as follows:
● Hand-crafting and painting: $7 variable costs per unit and $900 fixed costs within the relevant range 14
● Machine production: $2 variable costs and $2,000 fixed costs
a. Calculate total costs for each method at 100 units.

b. Calculate total costs for each method at 300 units.