Chocolate brand Ltd. manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was purchased recently and can make

4,800

per month. The machine costs

$7,000

and is depreciated using straight-line depreciation over 10 years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total

$900

per month.

ChocolateBrand

currently makes and sells

3,800

jaw-breakers per month.

ChocolateBrand

buys just enough materials each month to make the jaw-breakers it needs to sell. Materials cost

20

cents per jaw-breaker. Next year the company expects demand to increase by 100%. At this volume of materials purchased, it will get a 10% discount on price. Rent and other fixed manufacturing overhead costs will remain the same.

Requirement 1. What is the current annual relevant range of output?

.

Part 2Requirement 2. What is the current annual fixed manufacturing cost within the relevant range? What is the variable manufacturing cost? . What will the relevant range of output be next year? How will total fixed and variable manufacturing costs change next year? If the demand increases by 100%, annual production will have to increase to

enter your response here

jaw-breakers next year to meet the expected increase