Current Costs in 2018 Expected Costs in 2019 Variable manufacturing costs Direct material cost per CMCB $ 180 $ 170 Direct labour cost per CMCB 50 45 Variable manufacturing cost per batch 1,600 1,500 for setups, materials handling, and quality control Fixed manufacturing costs Fixed manufacturing overhead costs that 320,000 320,000 can be avoided if CMCBs are not made Fixed manufacturing overhead costs of 800,000 800,000 plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made Svenson manufactured 8,000 CMCBs in 2018 in 40 batches of 200 each. In 2019, Svenson anticipates needing 10,000 CMCBs. The CMCBs would be produced in 80 batches of 125 each. The Minton Corporation has approached Svenson about supplying CMCBs to Svenson in 2019 at $300 per CMCB on whatever delivery schedule Svenson wants