A company's variable cost of producing special sensors varies according to the production level per year. The variable cost is SR 500 per sensor from 0 to 500 sensors. Above this level, the variable cost is different. At this time, the company is producing 500 sensors per year, and the average cost per sensor is SR 1,000. Next year, it expects to produce 1,000 sensors, and the projected average cost for all 1,000 sensors will be SR 1,500 per sensor.

1. What is the current fixed cost? (unit: SR)

a) 200,000 b) 150,000 c) 300,000 d) 250,000

2. If the fixed cost and variable cost rates hold constant next year, the average cost of the 800 sensor production is closet to which of the following?

(unit: SR) a) 1,563 b) 1,538 c) 1,575 d) 1,550