Question 3: Computations for fixed and variable costs At current sales volume of 100 units, fixed costs (FC) are $4 per unit and variable costs (VC) are $6 per unit. a) Compute total fixed costs at current sales volume. total FC - 400 b) Suppose that sales volume increases to 125 units. At this new volume, total FC = 500 FC per unit = 4 X VC per unit - 6 total VC = 750 c) Write down the total cost equation: TC = 400 + 600 X "volume (e.g., if TC=500+2*volume, enter 500 in the first box and 2 in the second box) Predict total costs at sales volume of 80 units: 30000 X Predict total costs at sales volume of 120 units: 120000 X d) When sales volume increases by 1 unit, total costs O Increase by unit vc = $6 increase by unit FC = $4 Increase by unit cost = $10 not enough information