1.In 2020, Ingram Corp. is a small start-up manufacturer. It has one machine capable of producing 100,000 units per year. Ingram currently produces just 1000 to 2000 units per month. The machine cost is a step cost, but it can be reasonably modeled as which type of cost?

a. variable

b. fixed

2.In 2028, Ingram has massively grown and now produces 5 million to 10 million units per month. The machines are essentially the same as in 2020. Machine cost can be reasonably modeled as what in 2028?

a. fixed

b. variable

Please state the reasons