Part II 1. a) Explain the terms fixed cost' and 'variable cost. Give two examples of each cost. (6 marks) You are preparing the bid for the contract of Wah Tin Court, which has 600 units. The cost information of two housing estates, with a similar cost structure as that of Wah Tin Court, is as follows: No. of units Total cost per month Housing Estate A 400 $1,500,000 Housing Estate B 700 $2,400,000 You have known that the total costs consist of fixed cost and variable cost. The company applies cost plus pricing method of 30% to determine the monthly charge. What are the fixed cost and variable cost per unit per month? (8 marks) ii) Determine the bidding monthly price of Wah Tin Court. (6 marks) iii) Explain whether you would use cost plus pricing in the above bidding. (10 marks)