(Time and relevant costs) The following are costs associated with a product line of Turnbull Mechanical Systems. The costs reflect capacity-level production of 45,000 units per year.

Prepare a written presentation showing how time affects relevant costs for a product line. Begin with the point in time at which the product and production facilities are in the planning stage. Then, show how the set of relevant costs changes (1) after acquisition of the production facilities but before actual pro¬ duction commences, and (2) after production of products is complete but before the units are sold.LO1

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Variable production costs Fixed production costs Variable selling costs Fixed selling and administrative costs $45 27 12 16