Costs (Variable and Fixed):

Variable cost in the first year come in at $156/unit which is expected to grow 3.24% for years 2 through 5 and 4.92% for years 6 through 10. Fixed costs start off in year one at $5,312,975 and follows the same time path as variable costs. Growth in fixed costs are anticipated to be 3.22% for years 2 through 5 and 3.87% for years 6 through 10. OPS is contemplating structural changes to increase operating leverage, but no plans have currently been finalized. Show variable and fixed costs for years 1-10 and a terminal period.