Award Plus Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce $10,000$ medals each month; current monthly production is $7,500$ medals. The company normally charges $$225$ per medal. Variable costs and fixed costs for the current activity level of $75$ percent follow:

$\backslash$table$[[,\backslash$table$[[$Current$],[$Product Costs$]]],[$Manufacturing$],[],[$Material$,300,000],[$Marketing$,187,500],[$Total variable costs,$$862,500$