$1$

The Dorlone Compony produces a set of wood patio furniture conststing of a table and four chairs. The company has enough customer demand to justfy producing Its full capacity of $2,000$ sets per year. Annual cost dato at full capacity follow.

Required:

$2$ Compute the sversge proeuct cost of one estio set.

$3.$ Assume thet proouction drops ta only $1,000$ sets sinus w$.$ Wous you expect the suelsge procuent cost cer set to ingresse. decresse, or remsin unchsnged?

Complete this question by entering your answers in the tabs below.

the uated $1$

Tafuriad $2$

Retrunnd $3$

Is a procuct cost, it should aso be classitied as eather difact or nal nact.$)$

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