A. Develop a cost equation on the following: Franklin Foods has current year costs consisting of $5 per unit Variable Costs and $10,000 in Fixed Costs. Assume that Franklin Foods and a major supplier have entered into a partnership that will result in a per-unit decrease in Franklin's variable cost of $0.75 next year. The company will also be able to reduce their annual leasing costs by 25%. What is the new cost equation, and what will be the estimated total costs if production is estimated to be 13,500 units next year? Explain your findings.

B. Explain the differences between fixed, variable, and mixed costs.