use the table to help answer the 3 questions

The Derilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full canaritu of 2.000 sets ner vear. Annual cost data at full capacity follow: Product Cost Direct - 212,000 indirect 94,000 Total 306,000 \# of sets produced 2,000 Average cost per $(306,000/2,000)153 With a drop in production from 2,000 sets to 1000 sets, the variable cost per set will remain unchanged however, the fixed cost per set will increase as the total ficed cost which is constant is spread over a lesser number of seis. Hence, the average product cost per set will increase